Changes in the Structure of Earnings During the Polish Transition

Author/Editor:

Eswar S Prasad ; Michael P. Keane

Publication Date:

August 1, 2002

Electronic Access:

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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.

Series:

Working Paper No. 02/135

Subject:

English

Publication Date:

August 1, 2002

ISBN/ISSN:

9781451855715/1018-5941

Stock No:

WPIEA1352002

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

54

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