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All Quiet on the Wage Front?

  • Puhani, Patrick A.

We analyse the Polish wage and unemployment structure between 1992 and 1995 on the basis of the Polish Labour Force Survey. It is shown that within this period wage inequality has stabilised. Surprisingly, wage inequality is lower in the private than in the public sector. Our test results show that, contrary to the public sector, there are no gender differences in the valuation of human capital in the private sector. This supports the hypothesis that the transition towards a market economy promotes the equality of the sexes. Although the higher?education wage premium has risen significantly over the observation period, the ceteris paribus wage differential between white?collar and blue?collar workers is about zero. Indeed, we find that blue?collar workers as well as workers in the mining, manufacturing, and construction industries have kept or improved their relative wage position despite an increase in unemployment for these groups. There is therefore significant evidence for rigidities in the Polish labour market.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 97-03.

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Date of creation: 1997
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Handle: RePEc:zbw:zewdip:5113
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  1. Alan B. Krueger & Jorn-Steffen Pischke, 1995. "A Comparative Analysis of East and West German Labor Markets: Before and After Unification," NBER Chapters, in: Differences and Changes in Wage Structures, pages 405-446 National Bureau of Economic Research, Inc.
  2. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, World Bank Group, vol. 9(2), pages 201-30, May.
  3. repec:cup:cbooks:9780521395311 is not listed on IDEAS
  4. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  5. repec:cup:cbooks:9780521438827 is not listed on IDEAS
  6. Jenkins, Stephen P, 1995. "Accounting for Inequality Trends: Decomposition Analyses for the UK, 1971-86," Economica, London School of Economics and Political Science, vol. 62(245), pages 29-63, February.
  7. Edward J. Bird & Johannes Schwarze & Gert Wagner, 1994. "Wage effects of the move toward free markets in East Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 390-400, April.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
  10. Francine D. Blau & Lawrence M. Kahn, 1994. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  11. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  12. Puhani, Patrick A. & Steiner, Viktor, 1996. "Public works for Poland? Active labour market policies during transition," ZEW Discussion Papers 96-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Robert J. Flanagan, 1995. "Wage Structure in the Transition of the Czech Economy," IMF Working Papers 95/36, International Monetary Fund.
  14. Steiner, Viktor & Kwiatkowski, Eugeniusz, 1995. "The Polish labour market in transition," ZEW Discussion Papers 95-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  15. Dolado, Juan J. & Jimeno, Juan F, 1995. "Why is Spanish Unemployment so High?," CEPR Discussion Papers 1184, C.E.P.R. Discussion Papers.
  16. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, 05.
  17. Bertola, Giuseppe & Ichino, Andrea, 1995. "Wage Inequality and Unemployment: US vs Europe," CEPR Discussion Papers 1186, C.E.P.R. Discussion Papers.
  18. repec:cup:cbooks:9780521433297 is not listed on IDEAS
  19. 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.
  20. Puhani, Patrick A., 1995. "Labour supply of married women in Poland: a microeconometric study based on the Polish labour force survey," ZEW Discussion Papers 95-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  21. repec:cup:cbooks:9780521367288 is not listed on IDEAS
  22. Commander, Simon & Coricelli, Fabrizio & Staehr, Karsten, 1991. "Wages and employment in the transition to a market economy," Policy Research Working Paper Series 736, The World Bank.
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