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Changes in the Structure of Earnings During the Polish Transition

  • Eswar Prasad
  • Michael P. Keane

This paper documents that inequality in labor earnings increased substantially during the economic transition in Poland. One surprising result is that earnings inequality increased markedly in both the private and public sectors, indicating that even state-owned enterprises in Poland moved toward competitive wage setting during the transition. Education premia increased sharply, while experience premia declined. Increases in within-group inequality account for about 60 percent of the increase in overall wage inequality. But, contrary to the experience of countries like the United States, increases in within-group inequality in Poland were very different across skill groups, with much larger increases for highly educated workers.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/135.

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Length: 54
Date of creation: 01 Aug 2002
Date of revision:
Handle: RePEc:imf:imfwpa:02/135
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