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The Polish wage inequality explosion1

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  • Andrew Newell
  • Mieczyslaw W. Socha

Abstract

This paper presents and analyses the sharp increase in hourly wage inequality after 1998 in Poland. The increase was similar in magnitude to the much‐studied increase in British wage inequality during the 1980s. Using data from the Polish Labour Force Survey, we find this increase to be associated with rising wage differentials and within‐group variances at both the upper and lower ends of the wage distribution. These increases are associated with differences in wage‐setting patterns between the public and private sector as well as with the rapid increase in demand for educated labour. One important difference between the sectors is the lack of an impact of local labour market conditions, or wage curve, clearly evident in private sector wages, on public sector wages.

Suggested Citation

  • Andrew Newell & Mieczyslaw W. Socha, 2007. "The Polish wage inequality explosion1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(4), pages 733-758, October.
  • Handle: RePEc:bla:etrans:v:15:y:2007:i:4:p:733-758
    DOI: 10.1111/j.1468-0351.2007.00302.x
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    Cited by:

    1. Laporšek, Suzana & Orazem, Peter F. & Vodopivec, Milan & Vodopivec, Matija, 2021. "Winners and losers after 25 years of transition: Decreasing wage inequality in Slovenia," Economic Systems, Elsevier, vol. 45(2).
    2. Mikołaj Czajkowski & Tomasz Gajderowicz & Marek Giergiczny & Gabriela Grotkowska & Urszula Sztandar-Sztanderska, 2020. "Choosing the Future: Economic Preferences for Higher Education Using Discrete Choice Experiment Method," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(4), pages 510-539, June.

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