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Markets for Communist Human Capital: Returns to Education and Experience in the Czech Republic and Slovakia

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  • Robert S. Chase

Abstract

This research examines differences in earnings structure between Communist and post-Communist Czech Republic and Slovakia using four sets of similar micro-data. It presents hypotheses about how earnings dispersion, returns to education, and returns to experience will change across regimes and tests those hypotheses using earnings equations. From fairly low levels during Communism, e.g., 2.4 percent for Czech men in 1984, the return to education increased quite dramatically during transition, e.g., to 5.2 percent for Czech men in 1993. Returns to experience fell. Though women have higher returns to education in general, returns for men increased more across regime change. Those with academic secondary education experienced a particularly large earnings increase. In the Czech Republic, where transition occurred more rapidly and deeply, earnings structure changes appear larger than in Slovakia.

Suggested Citation

  • Robert S. Chase, 1997. "Markets for Communist Human Capital: Returns to Education and Experience in the Czech Republic and Slovakia," William Davidson Institute Working Papers Series 109, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:1997-109
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    Cited by:

    1. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Borisov Gleb, 2005. "The human capital heterogeneity at the Russian labor market," EERC Working Paper Series 01-151e, EERC Research Network, Russia and CIS.
    3. Falaris, Evangelos M., 2004. "Private and public sector wages in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 56-72, March.
    4. Kevin Denny & Patrick Orla Doyle, 2005. "Returns to basic skills in Central and Eastern Europe - a semi-parametric approach," Working Papers 200507, School of Economics, University College Dublin.
    5. Sanghamitra Kanjilal-Bhaduri & Francesco Pastore, 2018. "Returns to Education and Female Participation Nexus: Evidence from India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(3), pages 515-536, September.
    6. Simeonova-Ganeva, Ralitsa, 2006. "Влияние На Човешкия Капитал Върху Икономическия Растеж (България, 1949-2005 Г.) [The Impact of Human Capital on the Economic Growth (Bulgaria, 1949-2005)]," MPRA Paper 37244, University Library of Munich, Germany.
    7. Jiří Balcar, 2012. "The “Soft Five” in Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(43), pages 23-44, March.
    8. Kanjilal-Bhaduri, Sanghamitra & Pastore, Francesco, 2018. "Returns to Education and Female Work Force Participation Nexus: Evidence from India," GLO Discussion Paper Series 162, Global Labor Organization (GLO).
    9. Niels-Hugo Blunch & Maitreyi Bordia Das, 2015. "Changing norms about gender inequality in education: Evidence from Bangladesh," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(6), pages 183-218.
    10. Miroslav Stefanik, 2011. "Changes in private returns to education caused by the tertiary education expansion in Slovakia," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 1(2), pages 167-176, December.
    11. Fiona Burke & Patrick Walsh, 2012. "Regional earning disparities and the speed of transition: evidence from Poland 1994–1997," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-19, December.
    12. repec:eee:labchp:v:3:y:1999:i:pb:p:2809-2857 is not listed on IDEAS
    13. Boris Vujčić & Vedran Šošić, 2009. "Return to Education and the Changing Role of Credentials in the Croatian Labor Market," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 189-205, May.
    14. Jiří Balcar, 2016. "Is it better to invest in hard or soft skills?," The Economic and Labour Relations Review, , vol. 27(4), pages 453-470, December.
    15. Mikko Aro, 2004. "Brave New World? Value of Education in Post-Socialist Poland," LIS Working papers 374, LIS Cross-National Data Center in Luxembourg.
    16. Jiri Balcar, 2013. "Soft Competencies in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 88-99, April.
    17. Kertesi, Gábor & Köllő, János, 2001. "A gazdasági átalakulás két szakasza és az emberi tőke átértékelődése. A bérszerkezet átalakulása Magyarországon 1986-1999 - III. rész [The two stages of economic transformation and the re-evaluatio," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 897-919.
    18. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857, Elsevier.

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