Are Transition Economy Workers Underpaid?

Vera A. Adamchik, Josef Brada and Arthur E. King
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Vera A. Adamchik: University of Houston-Victoria
Arthur E. King: Lehigh University

No 278, Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies)

Abstract: We examine the extent to which workers in transition and developed market economies are able to obtain wages that fully reflect their skills and labor force characteristics. We find that workers in two transition economies, the Czech Republic and Poland, are able to better attain the maximum wage available than are workers in a sample of developed market economies. This greater wage-setting efficiency in the transition economies appears to be more the result of social and demographic characteristics of the labor force than of the mechanisms for setting wages or of labor market policies.

Keywords: labor markets; wage inefficiency; job search; stochastic frontier; economic transition (search for similar items in EconPapers)
JEL-codes: J31 P23 (search for similar items in EconPapers)
Pages: 31
Date: 2009-12
New Economics Papers: this item is included in nep-lab and nep-tra
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