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Change in Wage Inequality in the Czech Republic: Evidence from Linked Employer-Employee Data

Research output: Contribution to conferencePaperResearch

  • Department of Economics
  • Centre for Research in Integration, Education, Qualifications and Marginalization (CIM)
  • Center for Corporate Performance (CCP)
In this paper, we look at the evolution of the Czech labor market, and its wage structure in particular, using a linked employer-employee dataset covering a large fraction of the Czech labor market over the period 1998-2006. Estimating conventional earnings equations we find evidence of diminishing gender inequality, decreased returns to human capital, especially to education. Moreover, exploiting the linked employer-employee character of the data set, we document changes in within-firm wage dispersion and short-term variations around a constant level of between-firm dispersion. Next, we investigate various hypotheses related to transition towards a market economy, increased domestic and international competition and an increasingly decentralized wage bargaining to explain these patterns. We find some support for that the three mechanisms - increased international competition, further marketisation and decentralized wage setting - all have contributed to the changes in the Czech wage structure.
Original languageEnglish
Publication year2008
Publication statusPublished - 2008
EventFour-Year Membership of Central and Eastern European Countries in the European Union: the effects and new calls for the national and regional labour markets - Karvina, Czech Republic
Duration: 14 May 200816 May 2008

Conference

ConferenceFour-Year Membership of Central and Eastern European Countries in the European Union: the effects and new calls for the national and regional labour markets
CountryCzech Republic
CityKarvina
Period14/05/200816/05/2008

    Research areas

  • Wage inequality, Transition countries, Linked employer-employee data

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