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Employment and wages in transition : panel evidence from Poland

Author

Listed:
  • Atanas Christev
  • Felix FitzRoy

Abstract

New survey data for a panel of Polish firms is used to estimate employment and wage adjustments under various forms of ownership (insider vs. outsider) and asymmetric response to exogenous shocks. In contrast to earlier studies, dynamic panel data estimators (GMM) allow for endogeneity of observed variables and partial adjustment to shocks. Results differ from other findings in the transition literature: wages have little effect on dynamic labor demand and the firm-size wage effect is confirmed. Firms that expand employment have to pay significantly larger wage increases and rising sales add little to employment, suggesting labor hoarding. Dec1ining sales, however, significantly reduce employment and privatization (or anticipation thereof) has the expected benefits.

Suggested Citation

  • Atanas Christev & Felix FitzRoy, 1999. "Employment and wages in transition : panel evidence from Poland," Finanzwissenschaftliche Diskussionsbeiträge : Specials series: Industrial and social policies in countries in transition S-19, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    • Handle: RePEc:pot:fiwids:s19
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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