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Wage Differentials and Wage Inequality in Croatia, 1970-2008: Assessing the Labor Market Impact of Economic Transformation

Author

Listed:
  • Saul D. Hoffman

    (Department of Economics,University of Delaware)

  • Ivo Bicanic

    (Department of Economics,University of Zagreb)

  • Oriana Vukoja

    (Department of Economics,University of Zagreb)

Abstract

In this paper, we examine wage inequality and wage differentials in Croatia from 1970 to 2008. We focus especially on changing income inequality related to educational and vocational attainment, changing income inequality within those groups, and how these two components of inequality were affected by the economic transformation from Socialism to capitalism. We find that income inequality between groups was relatively stable, while overall inequality trended upward in the post-transformation period. This finding is consistent with a growing importance of individual rather than group productivity in labor market compensation, a change broadly consistent with the economic transformation of the Croatian labor market.

Suggested Citation

  • Saul D. Hoffman & Ivo Bicanic & Oriana Vukoja, 2010. "Wage Differentials and Wage Inequality in Croatia, 1970-2008: Assessing the Labor Market Impact of Economic Transformation," Working Papers 10-13, University of Delaware, Department of Economics.
    • Handle: RePEc:dlw:wpaper:10-13.
    as

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    File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2010/UDWP2010-13.pdf
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    References listed on IDEAS

    as
    1. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, January.
    2. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555, Elsevier.
    3. World Bank, 2001. "Croatia : Economic Vulnerability and Welfare Study," World Bank Publications - Reports 15698, The World Bank Group.
    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 410-442, June.
    5. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
    6. International Monetary Fund, 2007. "Republic of Croatia: Selected Issues," IMF Staff Country Reports 2007/082, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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