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Wage Structures in the Transition of the Czech Economy


  • Robert J. Flanagan


From the perspective of market economies, central planning produced distinct distortions in the wage structures of socialist countries. This paper examines the extent to which wage structures in the state and private sectors have adjusted to remove such distortions during the economic transition, using micro data from the Czech Republic. There is strong evidence that Czech wage structures are moving toward patterns observed in market economies, and the change is being led by developments in the private sector. At the same time, the establishment of collective bargaining does not appear to be introducing countervailing distortions into Czech wage structures.

Suggested Citation

  • 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.
  • Handle: RePEc:pal:imfstp:v:42:y:1995:i:4:p:836-854

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    Cited by:

    1. Debra Patterson, 1999. "An open-economy transition model," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 5(1), pages 24-36, February.
    2. 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).
    3. Elizabeth Brainerd & David M. Cutler, 2005. "Autopsy on an Empire: Understanding Mortality in Russia and the Former Soviet Union," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 107-130, Winter.
    4. Phan, Diep & Coxhead, Ian, 2013. "Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1106-1122.
    5. Gabriela Grotkowska & Leszek Wincenciak, 2014. "Public sector wage premium in Poland: can it be explained by structural differences in employment?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 38.
    6. Profit, Stefan, 1997. "Twin peaks in regional unemployment and returns to scale in job-matching in the Czech Republic," SFB 373 Discussion Papers 1997,63, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    7. Keane, Michael P. & Prasad, Eswar S., 2006. "Changes in the structure of earnings during the Polish transition," Journal of Development Economics, Elsevier, vol. 80(2), pages 389-427, August.
    8. Elizabeth Brainerd, 2000. "How Does Privatization Affect Workers? The Case of the Russian Mass Privatization Program," William Davidson Institute Working Papers Series 303, William Davidson Institute at the University of Michigan.
    9. World Bank, 2003. "The Russian Labor Market : Moving from Crisis to Recovery," World Bank Publications, The World Bank, number 15007, June.
    10. Nesterova Daria & Sabirianova Klara, 1998. "Investment in Human Capital under Economic Transformation in Russia," EERC Working Paper Series 99-04e, EERC Research Network, Russia and CIS.
    11. Puhani, Patrick A., 1997. "All Quiet on the Wage Front? Gender, Public-Private Sector Issues, and Rigidities in the Polish Wage Structure," ZEW Discussion Papers 97-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Filer, Randall K. & Jurajda, Stepan & Planovsky, Jan, 1999. "Education and wages in the Czech and Slovak Republics during transition," Labour Economics, Elsevier, vol. 6(4), pages 581-593, November.
    13. Nadeem Ul Haque, 2007. "Why Civil Service Reforms Do Not Work," Labor Economics Working Papers 22192, East Asian Bureau of Economic Research.
    14. Nadeem Ul Haque, 1998. "Issues in the Designing of Public Sector Reform," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 299-327.
    15. Stefan Bojnec, 2003. "Wage formation during economic transformation: macroeconomic facts and firm survey evidence from Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 15(4), pages 571-593.
    16. Vladislav Flek & Jiri Vecernik, 1998. "Employment and Wage Structures in the Czech Republic," Archive of Monetary Policy Division Working Papers 1998/03, Czech National Bank.
    17. Philipp Rother, 2002. "Inflation in Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 14(1), pages 85-107.
    18. repec:kap:iaecre:v:5:y:1999:i:1:p:24-36 is not listed on IDEAS
    19. repec:prg:jnlcfu:v:2017:y:2017:i:3:id:501:p:57-68 is not listed on IDEAS

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