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The Polish Wage Curve: Micro Panel Data Analysis Based on the Polish Labor Force Survey

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Author Info

  • Baltagi, Badi H.

    ()
    (Syracuse University)

  • Rokicki, Bartlomiej

    ()
    (Warsaw University)

Abstract

This paper analyzes the Polish wage curve using individual data from the Polish Labor Force Survey (LFS) at the 16 NUTS2 regions over the period 1999 - 2010. This survey does not gather information on wages of self-employed or paid family workers. After excluding the unemployed, inactive and missing observations, we are left with over 102,924 observations. We find evidence in favor of the Polish wage curve with an unemployment elasticity of -0.06. We also find that males in Poland are significantly more responsive to local unemployment rates (-0.08) than their female counterparts (-0.04). Moreover, if the lagged unemployment rate is used as an instrument for current unemployment rate, we find that the unemployment elasticity increases substantially for less experienced and temporary workers.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7812.

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Length: 15 pages
Date of creation: Dec 2013
Date of revision:
Publication status: published in: Regional Science and Urban Economics, 2014,49, 36-47.
Handle: RePEc:iza:izadps:dp7812

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Keywords: wage curve; fixed effects; regional labor markets;

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  1. Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, Elsevier, vol. 61(2), pages 135-142, November.
  2. Duffy, Fiona & Walsh, Patrick Paul, 2001. "Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey," IZA Discussion Papers 295, Institute for the Study of Labor (IZA).
  3. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(3), pages 153-167, Summer.
  4. Iara, Anna & Traistaru, Iulia, 2003. "How flexible are wages in EU accession countries?," ZEI Working Papers B 25-2003, ZEI - Center for European Integration Studies, University of Bonn.
  5. Blanchflower, David G., 2001. "Unemployment, Well-Being, and Wage Curves in Eastern and Central Europe," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 364-402, December.
  6. Blanchflower, D. & Oswald, A., 1989. "The Wage Curve," Papers, London School of Economics - Centre for Labour Economics 340, London School of Economics - Centre for Labour Economics.
  7. Fiona Duffy & Patrick Paul Walsh, 2000. "A Regional Analysis of Wage Determination in Poland," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 8700, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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