The Polish Wage Inequality Explosion

26 Pages Posted: 20 Mar 2007

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

Multiple version iconThere are 2 versions of this paper

Date Written: February 2007

Abstract

This paper presents and analyses the sharp increase in hourly wage inequality after 1998 in Poland. The increase was similar in magnitude to the much-studied increase in British wage inequality during the 1980s. Using data from the Polish Labour Force Survey, we find this increase to be associated with rising wage differentials and within-group variances at both the upper and lower ends of the wage distribution. These increases are associated with differences in wage-setting patterns between the public and private sector as well in the rapid increase in the demand for educated labour. One important difference between the sectors is the lack of an impact of local labour market conditions, or wage curve, clearly evident in private sector wages, on public sector wages.

Keywords: Poland, wage inequality

JEL Classification: J31, P23

Suggested Citation

Newell, Andrew T. and Socha, Mieczyslaw, The Polish Wage Inequality Explosion (February 2007). IZA Discussion Paper No. 2644. Available at SSRN: https://ssrn.com/abstract=970247

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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