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The Polish wage inequality explosion1
Article first published online: 21 SEP 2007
DOI: 10.1111/j.1468-0351.2007.00302.x
Additional Information
How to Cite
Newell, A. and Socha, M. W. (2007), The Polish wage inequality explosion. Economics of Transition, 15: 733–758. doi: 10.1111/j.1468-0351.2007.00302.x
Publication History
- Issue published online: 21 SEP 2007
- Article first published online: 21 SEP 2007
- Abstract
- Article
- References
- Cited By
Keywords:
- J31;
- P23
- Poland;
- wages;
- transition;
- inequality
Abstract
This paper presents and analyses the sharp increase in hourly wage inequality after 1998 in Poland. The increase was similar in magnitude to the much-studied increase in British wage inequality during the 1980s. Using data from the Polish Labour Force Survey, we find this increase to be associated with rising wage differentials and within-group variances at both the upper and lower ends of the wage distribution. These increases are associated with differences in wage-setting patterns between the public and private sector as well as with the rapid increase in demand for educated labour. One important difference between the sectors is the lack of an impact of local labour market conditions, or wage curve, clearly evident in private sector wages, on public sector wages.