Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39446
Authors: 
Iara, Anna
Traistaru, Iulia
Year of Publication: 
2003
Series/Report no.: 
ZEI working paper B 25-2003
Abstract: 
The transition to a market economy and increased economic integration have fostered regional disparities in Central and Eastern European countries. This paper investigates whether and to what extent wages could act as an equilibrating mechanism in these countries by adjusting to local market conditions. Using regional data for the 1990s, we estimate static and dynamic wage curve models for Bulgaria, Hungary, Poland and Romania. We find empirical evidence for a wage curve in Bulgaria, Hungary and Poland suggesting that wages could help equilibrate labour markets following labour demand shocks. In the case of Romania, the unemployment elasticity of pay is not significantly different from zero.
Subjects: 
wage flexibility
panel data
EU accession countries
JEL: 
C23
J30
J60
Document Type: 
Working Paper

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