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Wage Structure in the Transition of the Czech Economy

Author

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  • Robert J. Flanagan

Abstract

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 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 in market economies, and the change is led by developments in the private sector and retarded by the sluggish response in state enterprises. 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 Structure in the Transition of the Czech Economy," IMF Working Papers 95/36, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:95/36
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    Citations

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    Cited by:

    1. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
    2. 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.
    3. 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.
    4. Nadeem Ul Haque, 2007. "Why Civil Service Reforms Do Not Work," Labor Economics Working Papers 22192, East Asian Bureau of Economic Research.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. Nadeem Ul Haque, 2007. "Why Civil Service Reforms Do Not Work," PIDE-Working Papers 2007:24, Pakistan Institute of Development Economics.
    10. Stepan Jurajda, 2003. "Does the Short Supply of College Education Bite?," CERGE-EI Working Papers wp213, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    11. Philipp Rother, 2002. "Inflation in Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 14(1), pages 85-107.
    12. Štìpán Jurajda, 2005. "Czech Relative Wages and Returns to Schooling: Does the Short Supply of College Education Bite? (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(1-2), pages 83-95, January.
    13. 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.
    14. repec:kap:iaecre:v:5:y:1999:i:1:p:24-36 is not listed on IDEAS
    15. 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.
    16. Stepan Jurajda & Randall K. Filer & Jan Planovsky, 2001. "Returns to the Market: Valuing Human Capital in the Post- Transition Czech and Slovak Republics," Development and Comp Systems 0012012, EconWPA.
    17. 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.
    18. Vladislav Flek & Kamil Galuscak & Jaromir Gottvald & Jaromir Hurnik & Stepan Jurajda & David Navratil & Petr Mares & Daniel Munich & Tomas Sirovatka & Jiri Vecernik, 2004. "Anatomy of the Czech Labour Market:From Over-Employment to Under-Employment in Ten Years?," Working Papers 2004/07, Czech National Bank, Research Department.
    19. Tor Eriksson & Mariola Pytliková & Frédéric Warzynski, 2013. "Increased sorting and wage inequality in the Czech Republic," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(2), pages 357-380, April.
    20. repec:prg:jnlcfu:v:2017:y:2017:i:3:id:501:p:57-68 is not listed on IDEAS
    21. 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.

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