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All Quiet on the Wage Front?

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  • Puhani, Patrick A.

Abstract

We analyse the Polish wage and unemployment structure between 1992 and 1995 on the basis of the Polish Labour Force Survey. It is shown that within this period wage inequality has stabilised. Surprisingly, wage inequality is lower in the private than in the public sector. Our test results show that, contrary to the public sector, there are no gender differences in the valuation of human capital in the private sector. This supports the hypothesis that the transition towards a market economy promotes the equality of the sexes. Although the higher?education wage premium has risen significantly over the observation period, the ceteris paribus wage differential between white?collar and blue?collar workers is about zero. Indeed, we find that blue?collar workers as well as workers in the mining, manufacturing, and construction industries have kept or improved their relative wage position despite an increase in unemployment for these groups. There is therefore significant evidence for rigidities in the Polish labour market. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 97-03.

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Date of creation: 1997
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Handle: RePEc:zbw:zewdip:5113

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Keywords: wage inequality; wage structure; labour market rigidities; Poland;

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References

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  1. Dolado, Juan J. & Jimeno, Juan Francisco, 1995. "Why is Spanish Unemployment so High?," CEPR Discussion Papers 1184, C.E.P.R. Discussion Papers.
  2. Orazem, Peter & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," Staff General Research Papers 5270, Iowa State University, Department of Economics.
  3. Francine D. Blau & Lawrence M. Kahn, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  4. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  5. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, November.
  6. Krueger, Alan B. & Pischke, Jörn-Steffen, 1992. "A comparative analysis of East and West German labor markets before and after unification," ZEW Discussion Papers 92-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. repec:fth:prinin:307 is not listed on IDEAS
  10. Edward J. Bird & Johannes Schwarze & Gert Wagner, 1994. "Wage effects of the move toward free markets in East Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 390-400, April.
  11. Puhani, Patrick A., 1995. "Labour supply of married women in Poland: a microeconometric study based on the Polish labour force survey," ZEW Discussion Papers 95-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Bertola, Giuseppe & Ichino, Andrea, 1995. "Wage Inequality and Unemployment: US vs Europe," CEPR Discussion Papers 1186, C.E.P.R. Discussion Papers.
  13. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521433297, November.
  14. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, 05.
  15. Steiner, Viktor & Kwiatkowski, Eugeniusz, 1995. "The Polish labour market in transition," ZEW Discussion Papers 95-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  16. Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
  17. Commander, Simon & Coricelli, Fabrizio & Staehr, Karsten, 1991. "Wages and employment in the transition to a market economy," Policy Research Working Paper Series 736, The World Bank.
  18. Jenkins, Stephen P, 1995. "Accounting for Inequality Trends: Decomposition Analyses for the UK, 1971-86," Economica, London School of Economics and Political Science, vol. 62(245), pages 29-63, February.
  19. Robert J. Flanagan, 1995. "Wage Structure in the Transition of the Czech Economy," IMF Working Papers 95/36, International Monetary Fund.
  20. Robert J. Flanagan, 1995. "Wage Structures in the Transition of the Czech Economy," IMF Staff Papers, Palgrave Macmillan, vol. 42(4), pages 836-854, December.
  21. Puhani, Patrick A. & Steiner, Viktor, 1996. "Public works for Poland? Active labour market policies during transition," ZEW Discussion Papers 96-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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Cited by:
  1. Jiří Večerník, 2001. "Earnings disparities in the czech republic: evidence of the past decade and cross-national comparison," Prague Economic Papers, University of Economics, Prague, vol. 2001(3).
  2. Vladimir Gligorov & Anna Iara & Michael Landesmann & Robert Stehrer & Hermine Vidovic, 2008. "Western Balkan Countries: Adjustment Capacity to External Shocks, with a Focus on Labour Markets," wiiw Research Reports 352, The Vienna Institute for International Economic Studies, wiiw.

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