Earnings Inequality and Transition: A Regional Analysis of Poland
AbstractIn 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 InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 441.
Length: 23 pages
Date of creation: Feb 2002
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Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-03-04 (All new papers)
- NEP-DCM-2002-03-04 (Discrete Choice Models)
- NEP-DEV-2002-03-04 (Development)
- NEP-LAB-2002-03-04 (Labour Economics)
- NEP-TRA-2002-03-04 (Transition Economics)
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