On the Identification of Relative Wage Rigidity Dynamics: A Proposal for a Methodology on Cross-Section Data and Empirical Evidence for Poland in Transition

Univ. of St. Gallen Dept. of Economics WP No. 2000-22, ZEW Discussion Paper No. 00-56

41 Pages Posted: 3 Jan 2001

See all articles by Patrick A. Puhani

Patrick A. Puhani

Leibniz Universität Hannover; University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research; IZA Institute of Labor Economics; Université Paris II - Panthéon-Assas

Date Written: October 2000

Abstract

We present a new and simple empirical methodology to identify relative wage rigidity dynamics. The methodology is applied to data from the Polish Labour Force Survey for the period 1994 to 1998.

We estimate ceteris paribus changes in relative wage and unemployment differentials for various labour market defining characteristics. A simultaneous increase in the relative wage and the unemployment likelihood is defined as a relative wage rigidity dynamic for a labour market characteristic.

We find that the Polish wage structure generated hardly any rigidities between 1994 and 1998 nor did it reduce possibly existing rigidities during that period.

Keywords: wages, unemployment, rigidities, identification, Poland

JEL Classification: J31, J64, P20

Suggested Citation

Puhani, Patrick A., On the Identification of Relative Wage Rigidity Dynamics: A Proposal for a Methodology on Cross-Section Data and Empirical Evidence for Poland in Transition (October 2000). Univ. of St. Gallen Dept. of Economics WP No. 2000-22, ZEW Discussion Paper No. 00-56, Available at SSRN: https://ssrn.com/abstract=254081 or http://dx.doi.org/10.2139/ssrn.254081

Patrick A. Puhani (Contact Author)

Leibniz Universität Hannover ( email )

Institut für Arbeitsökonomik
Koenigsworther Platz 1
30167 Hannover, DE 30167
Germany

University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research ( email )

Dufourstr. 48
St. Gallen, 9000
Switzerland
+41 71 224 2341 (Phone)
+41 71 224 2298 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Université Paris II - Panthéon-Assas

12 place du Pantheon
Paris cedex 06, 75231
France

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