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Wages distribution in Poland: The roles of privatization and international trade, 1992‐96

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  • Andrew Newell
  • Mieczyslaw Socha

Abstract

This paper reports an investigation into the changes in the wage distribution in Poland in the first half of the 1990s. We concentrate on the effects of privatization and international trade. We show that the tendency towards increased dispersion in wages halted between 1992 and 1996, despite a rapid expansion in private‐sector work. We also show that, during the same period, private‐sector workers typically earned less than their state‐sector counterparts on an hourly basis, and this gap widened. However, if one controls for experience, tenure and size of workplace, then there existed a small positive private‐sector premium. On the effects of international trade, we find suggestive circumstantial evidence that the increase in trade with Western Europe raised wages and employment in manufacturing.

Suggested Citation

  • Andrew Newell & Mieczyslaw Socha, 1998. "Wages distribution in Poland: The roles of privatization and international trade, 1992‐96," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(1), pages 47-65, May.
    • Handle: RePEc:bla:etrans:v:6:y:1998:i:1:p:47-65
    DOI: 10.1111/j.1468-0351.1998.tb00036.x
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    Cited by:

    1. 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.
    2. Jacob Weisberg & Mieczslaw Waclaw Socha, 2002. "Earnings in Poland: The Private Versus the Public Sector," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 7(3), pages 17-38, Fall.
    3. Nadeem ul Haque & Musleh ud Din (ed.), 2020. "Public Sector Efficiency: Perspectives on Civil Service Reform," PIDE Books, Pakistan Institute of Development Economics, number 2020:4, December.
    4. Keane, Michael P. & Prasad, Eswar S., 2006. "Changes in the structure of earnings during the Polish transition," Journal of Development Economics, Elsevier, vol. 80(2), pages 389-427, August.
    5. Flemming, J.S. & Micklewright, John, 2000. "Income distribution, economic systems and transition," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 14, pages 843-918, Elsevier.
    6. John E. Jackson & Bogdan W. Mach, 2009. "Job creation, job destruction, labour mobility and wages in Poland, 1988–19981," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 503-530, July.
    7. Gabriela Grotkowska & Leszek Wincenciak & Tomasz Gajderowicz, 2017. "Evolution of the Public-Sector Wage Premium in Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 5-31.
    8. Gabriela Grotkowska & Leszek Wincenciak & Tomasz Gajderowicz, 2018. "Public–private wage differential in a post‐transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(3), pages 495-522, July.
    9. Jelena Laušev, 2012. "Public Sector Pay Gap In Serbia During Large-Scale Privatisation,By Educational Qualification," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 57(192), pages 7-24, January –.
    10. Richard Disney & Jelena Laušev, 2011. "Monopsony With Heterogeneous Labour: Evidence From Economic Transition," Discussion Papers 11/11, University of Nottingham, School of Economics.
    11. Andrzej Cieślik & Bartłomiej Rokicki, 2016. "Individual wages and regional market potential," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(4), pages 661-682, October.
    12. repec:wsr:wpaper:y:2010:i:047 is not listed on IDEAS
    13. Gabriela Grotkowska, 2016. "Regional variation in the public sector wage premium in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    14. G. P. Caselli & M. Battini, 2000. "The changing distribution of earnings in Poland from 1989 to 1996," Applied Economics Letters, Taylor & Francis Journals, vol. 7(11), pages 699-702.
    15. Nadeem ul Haque & Musleh Ud Din (ed.), 2006. "Public Sector Efficiency Perspectives On Civil Service Reform," PIDE Books, Pakistan Institute of Development Economics, number 2006:2, October.
    16. Jelena Lausev, 2014. "WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 516-550, July.

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