Employment Fluctuations and Dynamics of the Aggregate Average Wage in Poland 1996 - 2003

Michal Myck, Leszek Morawski and Jerzy Mycielski ()

No 545, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: The aggregate average wage is often used as an indicator of economic performance and welfare, and as such often serves as a benchmark for changes in the generosity of public transfers and for wage negotiations. Yet if economies experience a high degree of (nonrandom) fluctuation in employment the composition of the employed population will have a considerable effect on the computed average. In this paper we demonstrate the extent of this problem using data for Poland for the period 1996-2003. During these years unemployment in Poland almost doubled. We show that about a quarter of the growth in the average wage during this period could be contributed purely to changes in employment.

Keywords: Aggregate wage; Employment dynamics; Poland (search for similar items in EconPapers)
JEL-codes: E24 J21 J31 (search for similar items in EconPapers)
Pages: 17 p.
Date: 2006
New Economics Papers: this item is included in nep-lab and nep-tra
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Citations: View citations in EconPapers (5)

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Working Paper: Employment Fluctuations and Dynamics of the Aggregate Average Wage in Poland 1996-2003 (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp545

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