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Earnings Inequality and Transition: A Regional Analysis of Poland

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  • Walsh, Patrick Paul

    ()
    (University College Dublin)

  • Sibley, Christopher W.

    (Trinity College Dublin)

Abstract

In this paper we estimate the impact of transition on earnings inequality using data across Polish regions 1994-1997. Our central result is that earnings inequality is higher in regions that are more advanced in restructuring (higher labour productivity/job reallocation rates), controlling for unobservable regional fixed effects. At the national level rapid growth does not seem to be associated with earnings inequality. This aggregate relationship is shown to be misleading. The positive relationship between earnings inequality and the stage of transition across regions remains when we apply an infrastructure-deficit based instrumental variable approach to allow for reverse causality.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 441.

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Length: 23 pages
Date of creation: Feb 2002
Date of revision:
Handle: RePEc:iza:izadps:dp441

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Keywords: Earnings inequality; transition; Polish regions;

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References

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  1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
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  4. Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc.
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  7. Faggio, Giulia & Konings, Jozef, 1999. "Gross Job Flows and Firm Growth in Transition Countries: Evidence Using Firm Level Data on Five Countries," CEPR Discussion Papers 2261, C.E.P.R. Discussion Papers.
  8. Steve J. Davis & John Haltiwanger, 1991. "Gross Job Creation, Gross Job Destruction and Employment Reallocation," NBER Working Papers 3728, National Bureau of Economic Research, Inc.
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  10. Boeri, Tito & Scarpetta, Stefano, 1996. "Regional mismatch and the transition to a market economy," Labour Economics, Elsevier, vol. 3(3), pages 233-254, October.
  11. Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
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Cited by:
  1. E. Bardasi & C. Monfardini, 2004. "Women's Employment, Children and Transition: An Empirical Analysis on Poland," Working Papers 523, Dipartimento Scienze Economiche, Universita' di Bologna.
  2. Lauer, Charlotte & Beblo, Miriam, 2002. "Intergenerational Poverty Dynamics in Poland: Family Background and Children's Educational Attainment During Transition," ZEW Discussion Papers 02-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Epstein, Gil S., 2002. "Informational Cascades and Decision to Migrate," IZA Discussion Papers 445, Institute for the Study of Labor (IZA).
  4. Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute for the Study of Labor (IZA).
  5. Ferragina, Anna Maria & Pastore, Francesco, 2005. "Mind the Gap: Unemployment in the New EU Regions," IZA Discussion Papers 1565, Institute for the Study of Labor (IZA).
  6. Lukiyanova, A., 2011. "Wage Inequality in Russian Economic Transition (1991–2008): Stylized Facts and Explanations," Journal of the New Economic Association, New Economic Association, issue 12, pages 124-147.
  7. Miriam Beblo & Stanislawa Golinowska & Charlotte Lauer & Katarzyna Pietka & Agnieszka Sowa, 2002. "Poverty Dynamics in Poland. Selected Quantitative Analyses," CASE Network Reports 0054, CASE-Center for Social and Economic Research.

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