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Changes in the Structure of Earnings During the Polish Transition
Author:
Mr. Eswar S Prasad
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and
Mr. Michael P. Keanenull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2002: Issue 135
Language:
English
Publication Date:
01 Aug 2002
DOI:
https://doi.org/10.5089/9781451855715.001
ISBN:
9781451855715
ISSN:
1018-5941
Pages:
54
Keywords:
WP; earnings inequality; earnings; private sector; worker; Wage inequality; between- and within-group inequality; education and experience premia; labor reallocation; transition; earnings distribution; distribution survey; September earnings survey data; earnings differential; gender earnings gap; earnings premium; earnings regression; sector earnings dispersion; Wages; Income inequality; Public sector; Eastern Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2002: Issue 135