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

  • Robert S. Chase
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    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 approximately 2.5 percent in 1984, the return to education increased to approximately 5 percent by 1993. During that period, returns to experience fell. Though women have higher returns to education, returns for men increased more across regime change. Those with academic secondary education experienced a particularly large earnings increase. Earnings structure changes appear larger in the Czech Republic than in Slovakia.

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    File URL: http://www.econ.yale.edu/growth_pdf/cdp770.pdf
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    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 770.

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    Length: 37 pages
    Date of creation: Jan 1997
    Date of revision:
    Handle: RePEc:egc:wpaper:770
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    Web page: http://www.econ.yale.edu/
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    1. 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.
    2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    3. Steven J. Davis, 1992. "Cross-Country Patterns of Change in Relative Wages," NBER Working Papers 4085, National Bureau of Economic Research, Inc.
    4. Alan B. Krueger & Jorn-Steffen Pischke, 1992. "A Comparative Analysis of East and West German Labor Markets: Before and After Unification," NBER Working Papers 4154, National Bureau of Economic Research, Inc.
    5. Katz, L.F. & Murphy, K.M., 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," Harvard Institute of Economic Research Working Papers 1580, Harvard - Institute of Economic Research.
    6. 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.
    7. 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.
    8. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, World Bank Group, vol. 9(2), pages 201-30, May.
    9. Jan Svejnar, 1991. "Microeconomic Issues in the Transition to a Market Economy," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 123-138, Fall.
    10. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
    11. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
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