Are Transition Economy Workers Underpaid?

Osteuropa-Institut Regensburg Wirtschaftswissenschaftliche Abteilung Working Paper No. 278 Dezember 2009

31 Pages Posted: 8 Dec 2010

See all articles by Vera A. Adamchik

Vera A. Adamchik

University of Houston - Victoria - School of Business Administration

Josef C. Brada

Arizona State University (ASU) - Economics Department

Arthur E. King

affiliation not provided to SSRN

Date Written: December 1, 2009

Abstract

We examine the extent to which workers in transition and developed market economies are able to obtain wages that fully reflect their skills and labor force characteristics. We find that workers in two transition economies, the Czech Republic and Poland, are able to better attain the maximum wage available than are workers in a sample of developed market economies. This greater wage-setting efficiency in the transition economies ap-pears to be more the result of social and demographic characteristics of the labor force than of the mechanisms for setting wages or of labor market policies.

Keywords: labor markets, wage inefficiency, job search, stochastic frontier, economic transition

JEL Classification: J31, P23

Suggested Citation

Adamchik, Vera A. and Brada, Josef C. and King, Arthur E., Are Transition Economy Workers Underpaid? (December 1, 2009). Osteuropa-Institut Regensburg Wirtschaftswissenschaftliche Abteilung Working Paper No. 278 Dezember 2009, Available at SSRN: https://ssrn.com/abstract=1721506 or http://dx.doi.org/10.2139/ssrn.1721506

Vera A. Adamchik (Contact Author)

University of Houston - Victoria - School of Business Administration ( email )

14000 University Blvd.
Sugar Land, TX 77479
United States

Josef C. Brada

Arizona State University (ASU) - Economics Department ( email )

Box 873806
Tempe, AZ 85287-3806
United States
602-965-6524 (Phone)
602-965-0748 (Fax)

HOME PAGE: http://www.mesharpe.com/eee_main.htm

Arthur E. King

affiliation not provided to SSRN ( email )

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