Skill-bias and Wage Inequality in the EU New Member States: Empirical Investigation

Jan Pintera ()
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Jan Pintera: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic

No 2022/26, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: We use the individual-level data on income and education level from the EU-SILC database to investigate the trends in income distribution and wage polarization in the EU New Member States. We do not confirm the existence of job polarization in wages and employment that has been observed in the United States or other developed countries. Rather, we document decreasing inequality, particularly in Czechia, Poland, Hungary and Slovakia. Also, our estimates of the elasticity of substitution between low and high skill labour are higher than often found in other countries. These results imply a different impact of globalization on the labour markets in the EU New Member States than in other countries. However, it remains unclear whether these differences are temporary or will prevail in the future.

Keywords: Labor Markets; Technological Change; Polarization; Skills (search for similar items in EconPapers)
JEL-codes: J30 J31 O14 O31 O33 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2022-10, Revised 2022-10
New Economics Papers: this item is included in nep-eur, nep-lma and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2022_26

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