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

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  • Puhani, Patrick A.

    (Leibniz University of Hannover)

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 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.

Suggested Citation

  • Puhani, Patrick A., 2000. "On the Identification of Relative Wage Rigidity Dynamics. A Proposal for a Methodology on Cross-Section Data and Empirical Evidence for Poland in Transition," IZA Discussion Papers 226, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp226
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    1. Puhani, Patrick, 2001. "Wage Rigidities in Western Germany: Microeconometric Evidence from the 1990s," CEPR Discussion Papers 3009, C.E.P.R. Discussion Papers.
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    3. Sylwia Roszkowska & Aleksandra Rogut, 2007. "Rozkład płac i kapitału ludzkiego w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 55-84.
    4. Zoey Wong & Afei Chen & Chenrong Shen & Dailong Wu, 2022. "Fiscal policy and the development of green transportation infrastructure: the case of China's high-speed railways," Economic Change and Restructuring, Springer, vol. 55(4), pages 2179-2213, November.

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    More about this item

    Keywords

    Wages; unemployment; rigidities; identification; Poland;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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