How flexible are wages in EU accession countries?

Anna Iara and Iulia Traistaru
Authors registered in the RePEc Author Service: Iulia Siedschlag ()

No B 25-2003, ZEI Working Papers from University of Bonn, ZEI - Center for European Integration Studies

Abstract: The transition to a market economy and increased economic integration have fostered regional disparities in Central and Eastern European countries. This paper investigates whether and to what extent wages could act as an equilibrating mechanism in these countries by adjusting to local market conditions. Using regional data for the 1990s, we estimate static and dynamic wage curve models for Bulgaria, Hungary, Poland and Romania. We find empirical evidence for a wage curve in Bulgaria, Hungary and Poland suggesting that wages could help equilibrate labour markets following labour demand shocks. In the case of Romania, the unemployment elasticity of pay is not significantly different from zero.

Keywords: wage flexibility; panel data; EU accession countries (search for similar items in EconPapers)
JEL-codes: C23 J30 J60 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/39446/1/382993063.pdf (application/pdf)

Related works:
Journal Article: How flexible are wages in EU accession countries? (2004)
Working Paper: How Flexible Are Wages In EU Accession Countries? (2004)
Working Paper: How Flexible are Wages in EU Accession Countries? (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:zeiwps:b252003

Access Statistics for this paper

More papers in ZEI Working Papers from University of Bonn, ZEI - Center for European Integration Studies Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().