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

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  • Robert S. Chase

Abstract

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 fairly low levels during Communism, e.g., 2.4 percent for Czech men in 1984, the return to education increased quite dramatically during transition, e.g., to 5.2 percent for Czech men in 1993. Returns to experience fell. Though women have higher returns to education in general, returns for men increased more across regime change. Those with academic secondary education experienced a particularly large earnings increase. In the Czech Republic, where transition occurred more rapidly and deeply, earnings structure changes appear larger than in Slovakia.

Suggested Citation

  • Robert S. Chase, 1997. "Markets for Communist Human Capital: Returns to Education and Experience in the Czech Republic and Slovakia," William Davidson Institute Working Papers Series 109, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:1997-109
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    5. Tito Boeri, 1994. ""Transitional" unemployment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 1-25, March.
    6. Flinn, Christopher J., 1997. "Labor Market Structure and Welfare: A Comparison of Italy and the U.S," Working Papers 97-07, C.V. Starr Center for Applied Economics, New York University.
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    Cited by:

    1. Niels-Hugo Blunch & Maitreyi Bordia Das, 2015. "Changing norms about gender inequality in education: Evidence from Bangladesh," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(6), pages 183-218, January.
    2. Miroslav Stefanik, 2011. "Changes in private returns to education caused by the tertiary education expansion in Slovakia," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 1(2), pages 167-176, December.
    3. Borisov Gleb, 2005. "The human capital heterogeneity at the Russian labor market," EERC Working Paper Series 01-151e, EERC Research Network, Russia and CIS.
    4. repec:eee:labchp:v:3:y:1999:i:pb:p:2809-2857 is not listed on IDEAS
    5. Falaris, Evangelos M., 2004. "Private and public sector wages in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 56-72, March.
    6. Boris Vujčić & Vedran Šošić, 2009. "Return to Education and the Changing Role of Credentials in the Croatian Labor Market," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 189-205, May.
    7. Kevin Denny & Orla Doyle, 2005. "Returns to basic skills in Central & Eastern Europe : a semi parametric approach," Working Papers 200507, School of Economics, University College Dublin.
    8. Mikko Aro, 2004. "Brave New World? Value of Education in Post-Socialist Poland," LIS Working papers 374, LIS Cross-National Data Center in Luxembourg.

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