Changes in the Structure of Earnings During the Polish Transition

August 1, 2002

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Eswar S Prasad, and Michael P. Keane Changes in the Structure of Earnings During the Polish Transition, (USA: International Monetary Fund, 2002) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper documents that inequality in labor earnings increased substantially during the economic transition in Poland. One surprising result is that earnings inequality increased markedly in both the private and public sectors, indicating that even state-owned enterprises in Poland moved toward competitive wage setting during the transition. Education premia increased sharply, while experience premia declined. Increases in within-group inequality account for about 60 percent of the increase in overall wage inequality. But, contrary to the experience of countries like the United States, increases in within-group inequality in Poland were very different across skill groups, with much larger increases for highly educated workers.

Subject: Economic sectors, Education, Income inequality, Labor, National accounts, Public sector, Wages

Keywords: Between- and within-group inequality, Distribution survey, Earnings, Earnings differential, Earnings distribution, Earnings inequality, Earnings premium, Earnings regression, Eastern Europe, Education and experience premia, Gender earnings gap, Income inequality, Labor reallocation, Private sector, Public sector, Sector earnings dispersion, September earnings survey data, Transition, Wage inequality, Wages, Worker, WP

Publication Details

Pages:

54
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/135
Stock No:

WPIEA1352002
ISBN:

9781451855715
ISSN:

1018-5941

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