The Distribution of Wages in Poland, 1992-2002

32 Pages Posted: 21 Feb 2005

See all articles by Andrew Newell

Andrew Newell

University of Sussex - School of Social Sciences & Cultural Studies; IZA Institute of Labor Economics

Mieczyslaw W. Socha

Date Written: February 2005

Abstract

This paper analyses the changes in the size distribution of wages in Poland over a decade of transition. Until about 1998 there were some forces tending to increase wage inequality and other forces contracting it. The result was a relatively constant level of inequality. Privatisation was the main force tending to increase wage inequality, partly because it generated major increases in the relative wages of professional and managerial workers. We demonstrate how private firms tend to pay less at the bottom end of the wage distribution and more at the top end. The main force contracting the variance of wages was the decline, between 1992 and 1998 in labour market participation of those with low levels of education. Wage inequality seems to have increased since 2000. Suggestively, whereas privatisation has continued, the decline in participation has halted.

Keywords: wages, Poland

JEL Classification: J31, P23

Suggested Citation

Newell, Andrew T. and Socha, Mieczyslaw, The Distribution of Wages in Poland, 1992-2002 (February 2005). IZA Discussion Paper No. 1485. Available at SSRN: https://ssrn.com/abstract=670152

Andrew T. Newell (Contact Author)

University of Sussex - School of Social Sciences & Cultural Studies ( email )

Falmer, Brightonm BN1 9QN
United Kingdom
+44 (0)1273 606755 (Phone)
+44 (0)1273 673563 (Fax)

IZA Institute of Labor Economics

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

No contact information is available for Mieczyslaw Socha

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