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The Distribution of Wages in Poland, 1992-2002

Author

Listed:
  • Newell, Andrew T.

    (University of Sussex)

  • Socha, Mieczyslaw

    (Warsaw University)

Abstract

This paper analyses the changes in the size distribution of wages in Poland over a decade of transition. Until about 1998 there were some forces tending to increase wage inequality and other forces contracting it. The result was a relatively constant level of inequality. Privatisation was the main force tending to increase wage inequality, partly because it generated major increases in the relative wages of professional and managerial workers. We demonstrate how private firms tend to pay less at the bottom end of the wage distribution and more at the top end. The main force contracting the variance of wages was the decline, between 1992 and 1998 in labour market participation of those with low levels of education. Wage inequality seems to have increased since 2000. Suggestively, whereas privatisation has continued, the decline in participation has halted.

Suggested Citation

  • Newell, Andrew T. & Socha, Mieczyslaw, 2005. "The Distribution of Wages in Poland, 1992-2002," IZA Discussion Papers 1485, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1485
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Newell, Andrew & Reilly, Barry, 2001. "The gender pay gap in the transition from communism: some empirical evidence," Economic Systems, Elsevier, vol. 25(4), pages 287-304, December.
    3. Keane, Michael P. & Prasad, Eswar S., 2006. "Changes in the structure of earnings during the Polish transition," Journal of Development Economics, Elsevier, vol. 80(2), pages 389-427, August.
    4. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    5. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, May.
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    Citations

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    Cited by:

    1. Joanna Landmesser, 2016. "Decomposition of differences In income distributions Using quantile regression," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 17(2), pages 331-348, June.
    2. Michele Giammatteo, 2006. "Inequality in Transition Countries: The Contributions of Markets and Government Taxes and Transfers," LIS Working papers 443, LIS Cross-National Data Center in Luxembourg.
    3. Anna Ruzik & Magdalena Rokicka, 2010. "The Gender Pay Gap in Informal Employment in Poland," CASE Network Studies and Analyses 406, CASE-Center for Social and Economic Research.
    4. Karolina Goraus & Joanna Tyrowicz, 2014. "Gender Wage Gap in Poland – Can It Be Explained by Differences in Observable Characteristics?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    5. Witkowska Dorota, 2018. "Does the Household Structure Influence Remuneration in Poland?," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 22(4), pages 24-42, December.
    6. Jens Holscher & Cristiano Perugini & Fabrizio Pompei, 2011. "Wage inequality, labour market flexibility and duality in Eastern and Western Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 23(3), pages 271-310.
    7. Arne Henningsen, 2009. "Why is the Polish farm sector still so underdeveloped?," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 47-64.
    8. Landmesser Joanna Małgorzata, 2016. "Decomposition of Differences in Income Distributions Using Quantile Regression," Statistics in Transition New Series, Polish Statistical Association, vol. 17(2), pages 331-348, June.
    9. repec:gdk:wpaper:19 is not listed on IDEAS
    10. Joanna Małgorzata Landmesser, 2016. "Decomposition Of Differences In Income Distributions Using Quantile Regression," Statistics in Transition New Series, Polish Statistical Association, vol. 17(2), pages 331-348, June.

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    More about this item

    Keywords

    Poland; wages;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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