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Markets for Communist Human Capital: Returns to Education and Experience in the Czech Republic and Slovakia

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  • Robert S. Chase
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    Abstract

    This research examines differences in earnings structure between Communist and post-Communist Czech Republic and Slovakia using four sets of similar micro-data. It presents hypotheses about how earnings dispersion, returns to education, and returns to experience will change across regimes and tests those hypotheses using earnings equations. From fairly low levels during Communism, e.g., 2.4 percent for Czech men in 1984, the return to education increased quite dramatically during transition, e.g., to 5.2 percent for Czech men in 1993. Returns to experience fell. Though women have higher returns to education in general, returns for men increased more across regime change. Those with academic secondary education experienced a particularly large earnings increase. In the Czech Republic, where transition occurred more rapidly and deeply, earnings structure changes appear larger than in Slovakia.

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    File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp109.pdf
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    Bibliographic Info

    Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 109.

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    Length: pages
    Date of creation: 01 Oct 1997
    Date of revision:
    Handle: RePEc:wdi:papers:1997-109

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    Cited by:
    1. Kevin Denny & Patrick Orla Doyle, 2005. "Returns to basic skills in Central and Eastern Europe - a semi-parametric approach," Working Papers, School Of Economics, University College Dublin 200507, School Of Economics, University College Dublin.
    2. Miroslav Stefanik, 2011. "Changes in private returns to education caused by the tertiary education expansion in Slovakia," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 1(2), pages 167-176, December.
    3. Falaris, Evangelos M., 2004. "Private and public sector wages in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 56-72, March.
    4. Boris Vujčić & Vedran Šošić, 2009. "Return to Education and the Changing Role of Credentials in the Croatian Labor Market," Transition Studies Review, Springer, Springer, vol. 16(1), pages 189-205, May.
    5. Borisov Gleb, 2005. "The human capital heterogeneity at the Russian labor market," EERC Working Paper Series 01-151e, EERC Research Network, Russia and CIS.

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