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Employment fluctuations and dynamics of the aggregate average wage in Poland, 1996–20031

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  • Michał Myck
  • Leszek Morawski
  • Jerzy Mycielski

Abstract

The aggregate average wage is often used as an indicator of economic performance and welfare, and as such often serves as a benchmark for changes in the generosity of public transfers and for wage negotiations. Yet if economies experience a high degree of (non‐random) fluctuation in employment, the composition of the employed population will have a considerable effect on the computed average. In this paper we demonstrate the extent of this problem using data for Poland for the period 1996–2003. During these years the employment rate in Poland fell from 51.2 percent to 44.2 percent and most of this fall occurred between the end of 1998 and the end of 2002. We show that about a quarter of the growth in the average wage during this period could be attributed purely to changes in employment.

Suggested Citation

  • Michał Myck & Leszek Morawski & Jerzy Mycielski, 2007. "Employment fluctuations and dynamics of the aggregate average wage in Poland, 1996–20031," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(4), pages 759-779, October.
    • Handle: RePEc:bla:etrans:v:15:y:2007:i:4:p:759-779
    DOI: 10.1111/j.1468-0351.2007.00306.x
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    Citations

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    Cited by:

    1. Jacek Wallusch, 2010. "Poland: Minimum Wage, Employment and Labour Migration," Chapters, in: Daniel Vaughan-Whitehead (ed.), The Minimum Wage Revisited in the Enlarged EU, chapter 11, Edward Elgar Publishing.
    2. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2022. "Returns to Education in European Emerging Markets: A Meta-Analytic Review," RRC Working Paper Series 95, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    3. Costas Christou, 2013. "The dynamics of wage determination in Romania," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(4), pages 713-729, October.
    4. Paweł Strawiński, 2009. "Ins and Outs of Polish Unemployment," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 1(3), pages 243-259, November.
    5. Aleksandra Majchrowska & Paweł Strawiński, 2016. "Regional Differences in Gender Wage Gaps in Poland: New Estimates Based on Harmonized Data for Wages," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(2), pages 115-141, June.
    6. Bukowski, Maciej & Koloch, Grzegorz & Lewandowski, Piotr, 2008. "Shocks and rigidities as determinants of CEE labor markets' performance. A panel SVECM approach," MPRA Paper 12429, University Library of Munich, Germany.

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