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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.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp87.pdf
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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 8700.

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Length: 29 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:lic:licosd:8700

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Keywords: Wage Determination; Unemployment; Restructuring and Polish Regions;

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  1. J Konings & Patrick Paul Walsh, 1993. "Evidence of Efficiency Wage Payments in UK Firm Level Panel Data," CEP Discussion Papers dp0138, Centre for Economic Performance, LSE.
  2. 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.
  3. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
  4. 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 353-67.
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