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  • 1, International Monetary Fund


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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.


These points are developed further in Flanagan (1994a).

Wage Structure in the Transition of the Czech Economy
Author: Mr. Robert J. Flanagan