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Title:Wage Determination under Communism and in Transition : Evidence from Central Europe PDF Logo
Authors:Basu, Swati
Estrin, Saul
Svejnar, Jan
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1276
Abstract:Using large firm-level data sets from the Czech Republic, Slovakia, Poland and Hungary, we show that the wage behavior of firms changed considerably as these economies launched their transitions to a market system. We find evidence of worker sharing in their enterprise rents and losses at the end of the communist period in some economies and within a year after the launching of the transition, we find rent sharing in all of them. Using the Czech and Slovak data we show that the state-owned enterprises (SOEs) that existed under communism and survived allow for less worker rent-sharing than other firms. We also test for the presence of a wage curve and with the exception of Slovakia we do not find a significant association between local unemployment and wages. Finally, we do not find significant effects of firm ownership on wages.
Subjects:wages
rent-sharing
transition economies
JEL:J41
J30
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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