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Earnings Inequality and Transition: A Regional Analysis of Poland

Author

Listed:
  • Sibley, Christopher W.

    (Trinity College Dublin)

  • Walsh, Patrick Paul

    (University College Dublin)

Abstract

In this paper we estimate the impact of transition on earnings inequality using data across Polish regions 1994-1997. Our central result is that earnings inequality is higher in regions that are more advanced in restructuring (higher labour productivity/job reallocation rates), controlling for unobservable regional fixed effects. At the national level rapid growth does not seem to be associated with earnings inequality. This aggregate relationship is shown to be misleading. The positive relationship between earnings inequality and the stage of transition across regions remains when we apply an infrastructure-deficit based instrumental variable approach to allow for reverse causality.

Suggested Citation

  • Sibley, Christopher W. & Walsh, Patrick Paul, 2002. "Earnings Inequality and Transition: A Regional Analysis of Poland," IZA Discussion Papers 441, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp441
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    Cited by:

    1. Miriam Beblo & Stanislawa Golinowska & Charlotte Lauer & Katarzyna Pietka & Agnieszka Sowa, 2002. "Poverty Dynamics in Poland. Selected Quantitative Analyses," CASE Network Reports 0054, CASE-Center for Social and Economic Research.
    2. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, February.
    3. E. Bardasi & C. Monfardini, 2004. "Women's Employment, Children and Transition: An Empirical Analysis on Poland," Working Papers 523, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Lauer, Charlotte & Beblo, Miriam, 2002. "Intergenerational Poverty Dynamics in Poland: Family Background and Children's Educational Attainment During Transition," ZEW Discussion Papers 02-34, ZEW - Leibniz Centre for European Economic Research.
    5. Sylwia Roszkowska & Aleksandra Rogut, 2007. "Rozkład płac i kapitału ludzkiego w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 55-84.
    6. repec:ezo:ezppap:wp25 is not listed on IDEAS
    7. Vera A. Adamchik & Thomas J. Hyclak, 2013. "The Evolution Of Regional Wage Differentials In A Transition Economy: Evidence From Poland," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 7(5), pages 1-13.
    8. Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute of Labor Economics (IZA).
    9. Epstein, Gil S, 2002. "Informational Cascades and Decision to Migrate," CEPR Discussion Papers 3287, C.E.P.R. Discussion Papers.
    10. Roszkowska, Sylwia & Rogut, Aleksandra, . "Rozkład płac i kapitału ludzkiego w Polsce," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2007(11-12).
    11. Lukiyanova, A., 2011. "Wage Inequality in Russian Economic Transition (1991–2008): Stylized Facts and Explanations," Journal of the New Economic Association, New Economic Association, issue 12, pages 124-147.

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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