Wage Inequality and the Labor Market Impact of Economic Transformation: Croatia, 1970-2008

Saul Hoffman (hoffmans@udel.edu), Ivo Bicanic and Oriana Vukoja
Additional contact information
Ivo Bicanic: Department of Economics,University of Zagreb
Oriana Vukoja: Department of Economics,University of Zagreb

No 11-17, Working Papers from University of Delaware, Department of Economics

Abstract: In this paper, we examine wage inequality and wage differentials in Croatia from 1970 to 2008 using two long aggregate time series on the distribution of income. We focus especially on changing income inequality related to educational and vocational attainment, changing income inequality within those groups, and how these two components of inequality were affected by the economic transformation from Socialism to capitalism. We find that income inequality between groups rose moderately post-transformation, while overall inequality increased more sharply. This finding is consistent with a growing importance of individual rather than group productivity in labor market compensation, a change broadly consistent with the economic transformation of the Croatian labor market.

Keywords: Croatia; Economics of Transition; Inequality; Gini coefficient (search for similar items in EconPapers)
JEL-codes: J3 P2 P23 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2011
New Economics Papers: this item is included in nep-his, nep-lab, nep-lma and nep-tra
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Forthcoming in Economic Systems

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Journal Article: Wage inequality and the labor market impact of economic transformation: Croatia, 1970–2008 (2012)
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