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Earnings Disparities in the Czech Republic: Evidence of the Past Decade and Cross-National Comparison

  • Jiri Vecernik


Wage and income surveys covering the period 1989-1999 are used to display changes in inequality of earnings and main factors of disparities. In the first part, increasing differences in the Czech Republic and the decreasing weight of demographic characteristics in wage structure are observed. In the second part, available evidence on cross-national comparison is gathered in order to demonstrate the increasing similarity of the Czech wage structure with that in Western countries. We document that the introduction of a market economy has led to an increase in earnings disparities more similar to those in the West; the "communist" demographic determination of earnings is being replaced to a great extent by "capitalist" market characteristics; and ownership disparities, instead of political privileges, have come to the fore. Thus, the overall earnings structure underwent systemic changes and approaches the Western pattern.

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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 373.

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Length: pages
Date of creation: 01 May 2001
Date of revision:
Handle: RePEc:wdi:papers:2001-373
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  1. Daniel Munich & Jan Svejnar & Daniel Munich, 1999. "Returns to Human Capital under the Communist Wage Grid and During the Transition to a Market Economy," William Davidson Institute Working Papers Series 272, William Davidson Institute at the University of Michigan.
  2. Stepan Jurajda, 2001. "Gender Wage Gap and Segregation in Late Transition," Labor and Demography 0111001, EconWPA.
  3. Robert J. Flanagan, 1995. "Wage Structure in the Transition of the Czech Economy," IMF Working Papers 95/36, International Monetary Fund.
  4. Vladislav Flek & Jiri Vecernik, 1998. "Employment and Wage Structures in the Czech Republic," Archive of Monetary Policy Division Working Papers 1998/03, Czech National Bank.
  5. 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.
  6. Hofer, Helmut & Pichelmann, Karl & Schuh, Andreas-Ulrich, 1998. "Price and Quantity Adjustments in the Austrian Labour Markets," Economics Series 57, Institute for Advanced Studies.
  7. Puhani, Patrick A., 1997. "All Quiet on the Wage Front?," ZEW Discussion Papers 97-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Anthony B. Atkinson & Andrea Brandolini, 2000. "Promise and Pitfalls in the Use of 'Secondary' Data-Sets: Income Inequality in OECD Countries," Temi di discussione (Economic working papers) 379, Bank of Italy, Economic Research and International Relations Area.
  9. Robert J. Flanagan, 1995. "Wage Structures in the Transition of the Czech Economy," IMF Staff Papers, Palgrave Macmillan, vol. 42(4), pages 836-854, December.
  10. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521433297, October.
  11. 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.
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