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Firms and wage inequality in Central and Eastern Europe

Iga Magda, Jan Gromadzki and Simone Moriconi

Journal of Comparative Economics, 2021, vol. 49, issue 2, 499-552

Abstract: We use large linked employer-employee data to analyze wage inequality patterns in Central and Eastern European (CEE) countries between 2002 and 2014. We show that, unlike in many other advanced economies, wage inequality levels have decreased in almost all CEE countries. These reductions in wage inequality resulted from disproportionately large increases in wages at the bottom of the wage distribution, and from decreases in between-firm wage inequality. We further find that the declines in wage inequality were driven by large wage structure effects that compensated for changes in the composition of workers.

Keywords: Wages; Wage inequality; RIF Regression; Quantile decomposition; Linked employer-employee data (search for similar items in EconPapers)
JEL-codes: D22 J31 J40 (search for similar items in EconPapers)
Date: 2021
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Related works:
Working Paper: Firms and wage inequality in Central and Eastern Europe (2021)
Working Paper: Firms and wage inequality in Central and Eastern Europe (2019) Downloads
Working Paper: Firms and wage inequality in Central and Eastern Europe (2019) Downloads
Working Paper: Firms and Wage Inequality in Central and Eastern Europe (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:49:y:2021:i:2:p:499-552

DOI: 10.1016/j.jce.2020.08.002

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