Adam, Jan, Employment and Wage Policies in Poland, Czechoslovakia and Hungary Since 1950 (New York: St. Martin’s Press, January 1984).
Commander, Simon, James Kollo, Cecilia Ugez, and Balazs Vilagi, “Hungary,” paper prepared for World Bank Conference on Unemployment, Restructuring and the Labor Market in East Europe and Russia (1993).
Earle, John S. and Gheorghe Opresu, “Aggregate Labor Market Behavior in the Restructuring of the Romanian Economy,” paper prepared for World Bank research project on the Labor Market in Transitional Socialist Economies (1994).
Flanagan, Robert J. (1994a), “Labor Market Responses to a Change in Economic System,” paper presented at Annual World Bank Conference on Development Economics (Washington, D.C., April).
Rutkowski, Jan., “Changes in Wage Structure and in Returns to Education During Economic Transition: The Case of Poland,” Center for International Studies, (Woodrow Wilson School, Princeton University, March 1994).
Webster, Leila M., and Dan Swanson, “The Emergence of Private Sector Manufacturing in the Former Czech and Slovak Federal Republic: A Survey of Firms,” World Bank Technical Paper Number 230 (Washington, D.C., 1993).
This paper was written in part while the author, who is Professor of Economics at the Graduate School of Business, Stanford University, was a visiting scholar at the IMF Research Department. The author is grateful to Jiri Vecernik for generously providing the files of the Survey of Economic Expectations and Attitudes. The views expressed in this paper do not necessarily represent those of the IMF or its member countries.
The regressions producing these estimates are not reported, but are available from the author.
The analyses for 1988 and 1991 are on grouped data, since the individual records are not available, while the analyses for 1993 are on individual data. This accounts for the large difference in R2 between these years.
The absence of a significant relationship between wages and experience in newly privatized state firms may reflect the comparatively small number of survey respondents in such firms.
The slope coefficients do not vary with worker status in the private sector. Interacting PROWN with the schooling and experience variables produced no significant interactions.
Because of housing restrictions, effective labor market competition is likely to be local, rather than national, so that large differentials are not necessary to attract workers over long distances.
The computations are available from the author.
The latter concept is broader in most countries, although the difference between union membership and bargaining coverage varies from a few percentage points in North America to over 50 percentage points in Austria, France, Germany, and Spain (OECD, 1994, Chapter 5).
The data for State include employees in recently privatized state firms. There was no significant difference in membership and coverage rates between these two groups.