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A Regional Analysis of Wage Determination in Poland

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  • Fiona Duffy
  • Patrick Paul Walsh

Abstract

A simple model of wage setting and restructuring predicts that the average wage level in a regional labour market in Poland, among other factors, will be negatively related to the unemployment rate and positively related to the degree of regional restructuring. As in Blanchflower and Oswald (1994), the estimated unemployment elasticity of pay across regions is approximately - 0.1. Workers in low unemployment regions earn more pay indicating the presence of profit sharing. Workers in more restructured regions are shown to receive higher premiums in pay indicating compensation for exposure to risk during restructuring.

Suggested Citation

  • Fiona Duffy & Patrick Paul Walsh, 2000. "A Regional Analysis of Wage Determination in Poland," LICOS Discussion Papers 8700, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    • Handle: RePEc:lic:licosd:8700
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp87.pdf
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    References listed on IDEAS

    as
    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    2. Alexandre Rekine & Patrick Paul Walsh, 1998. "European Trade and Foreign Direct Investment. U-Shaping Industrial Output in Central and Eastern Europe: Theory and Evidence," LICOS Discussion Papers 7398, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
    4. Konings, Jozef & Walsh, Patrick P, 1994. "Evidence of Efficiency Wage Payments in UK Firm Level Panel Data," Economic Journal, Royal Economic Society, vol. 104(424), pages 542-555, May.
    5. Phelps, Edmund S, 1990. " Effects of Productivity, Total Domestic-Product Demand and "Incentive Wages" on Unemployment in a Non-monetary Customer-Market Model of the Small Open Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 92(2), pages 353-367.
    6. Hartmut Lehmann & Patrick Paul Walsh, 1999. "Gradual restructuring and Structural Unemployment in Poland. A Legacy of Central Planning," LICOS Discussion Papers 7899, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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    Citations

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    Cited by:

    1. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, February.
    2. Baltagi, Badi H. & Rokicki, Bartlomiej, 2013. "The Polish Wage Curve: Micro Panel Data Analysis Based on the Polish Labor Force Survey," IZA Discussion Papers 7812, Institute of Labor Economics (IZA).
    3. David G. Blanchflower & Andrew J. Oswald, 2005. "The Wage Curve Reloaded," NBER Working Papers 11338, National Bureau of Economic Research, Inc.
    4. Baltagi, Badi H. & Rokicki, Bartlomiej, 2014. "The spatial Polish wage curve with gender effects: Evidence from the Polish Labor Survey," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 36-47.
    5. Dries, Liesbeth & Swinnen, Johan F. M., 2002. "Institutional Reform and Labor Reallocation During Transition: Theory Evidence From Polish Agriculture," World Development, Elsevier, vol. 30(3), pages 457-474, March.
    6. Vera A. Adamchik & Thomas J. Hyclak, 2013. "The Evolution Of Regional Wage Differentials In A Transition Economy: Evidence From Poland," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(5), pages 1-13.

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    More about this item

    Keywords

    Wage Determination; Unemployment; Restructuring and Polish Regions;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L0 - Industrial Organization - - General
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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