Gender Pay Gap in Poland

In this paper we examine the gender pay gap in Poland over 1987–1996, i.e., shortly before and during the transition to market economy. The principle source of data used throughout the paper is the Household Budget Survey conducted by the Polish Central Statistical Office. The study documents three major results. First, the transition to market economy in Poland favored women substantially in terms of relative earnings differentials. The gender pay gap decreased by 10.2 log% points and the position of mean female in male wage distribution went up by 9.9 percentiles over 1987–1996. By 1995, the values of these measures reached the level observed in industrial economies such as the U.K., Austria, Italy or Australia. Second, rising relative skills of women and rising returns to skills explain about half of the fall in the gender pay gap over 1987–1996. Third, the pay gap did not follow a smooth adjustment process. 1989, the year of the first democratic parliamentary elections, which resulted in forming the first non-communist government, saw the most spectacular change, although actual market reforms began one year after. The changes in the early phase of the transition were mostly driven by sudden shifts in relative wages and employment across industries. Afterwards, the pay gap measures stabilized, partly because rising overall wage inequalities offset the advantages of females due to observed skills.     

External shocks,economic reforms,and the foreign trade behavior of the Soviet Union,China, and Hungary, 1970–1987

This article examines the external shocks and subsequent adjustment processes in the Soviet Union, China, and Hungary during 1974–76, 1979–81, and 1984–87. It compares the experiences of the three socialist countries with regard to external shocks to those of inward-and outward-oriented groups of newly industrializing countries (NICs). In contrast to the NICs, terms of trade effects were of secondary magnitude to export demand effects of external shocks in the three socialist countries during the first two periods. The oil-exporting Soviet Union had beneficial terms of trade effects during the first two periods, with unfavorable effects coming only in the third period. The adjustment responses to the external shocks varied greatly in the Soviet Union from the other two reform-oriented socialist countries and from both groups of NICs. It is interesting to note that the types of responses in the Soviet Union were quite opposite to that one observes for market economies. However, reform-oriented China and Hungary seemed to have response patterns similar to those of market economies, though China's response was similar to the outward-oriented NICs, while Hungary's was similar to the inward-oriented NICs.     

从工资构成到工资定义:观念转换与定义重构

因国家对工资总量宏观调控所延伸的工资构成制度成为司法实践中判断是否属于工资的重要依据,其优点是简单,其弊端是逻辑上存有缺陷,其结果是工资成为约定的名义工资、劳动者权益受损及用人单位行为脱法。工资立法应当明确工资的法律定义,在观念上从工资由工资、奖金、绩效、补贴等组成的工资总额构成转换为工资定义的形式要素和工资内容的逻辑结构,实现对价观念与具体认定标准的统一;在制度上实现工资与非工资的区分,为厘清经济补偿基数、最低工资、社保工资基数、税基工资等提供规范基础。     

The relationship between parents and adult children in the economic culture of rural Netherlands, 1880–1910

This study examines the complexity of contradictory interests in the relationship between parents and adult children among agricultural wage laborers in rural Netherlands about 1900. One important potential issue of conflict was the marriage of children. In the case of wage laborers, Hajnal's independent livelihood theory is not really helpful in explaining regional differences in age at marriage. Marriage is viewed as a problem of balance and competition between the livelihood problems of parents and children. Two main issues of wage laborers are dealt with: the help adult children give to elderly parents and the control of the earnings of unmarried adolescent and adult children by their parents. Regional variations in children's help and parental control are measured and explained using four independent variables: extent of property ownership by wage laborers, extent of their production for the market (and need for unpaid family labor), wage level, and percentage who belonged to traditional religions in the village. Statistical analysis suggests that the property of agricultural wage laborers was most important in explaining variation in parent–child relationships. Wage level and religion also showed considerable explaining power, particularly for wages earned by unmarried children.     

The relationship between parents and adult children in the economic culture of rural Netherlands, 1880–1910

This study examines the complexity of contradictory interests in the relationship between parents and adult children among agricultural wage laborers in rural Netherlands about 1900. One important potential issue of conflict was the marriage of children. In the case of wage laborers, Hajnal's independent livelihood theory is not really helpful in explaining regional differences in age at marriage. Marriage is viewed as a problem of balance and competition between the livelihood problems of parents and children. Two main issues of wage laborers are dealt with: the help adult children give to elderly parents and the control of the earnings of unmarried adolescent and adult children by their parents. Regional variations in children's help and parental control are measured and explained using four independent variables: extent of property ownership by wage laborers, extent of their production for the market (and need for unpaid family labor), wage level, and percentage who belonged to traditional religions in the village. Statistical analysis suggests that the property of agricultural wage laborers was most important in explaining variation in parent–child relationships. Wage level and religion also showed considerable explaining power, particularly for wages earned by unmarried children.     

Productivity,employment and labor demand in Polish industry in the 1980s: Some preliminary results from enterprise-level data

The paper uses annual data from a panel of 334 Polish industrial enterprises over the period 1983–1988 to test empirically a simple neoclassical approach to the socialist labor market. First, an enterprise production function is estimated. The paper finds that for most enterprises, the resulting estimated marginal product of labor exceeds the wage paid by the enterprise by a considerable margin, suggesting general excess demand for labor. The paper then looks at how the difference between the MPL and the wage is related to the rate of change of employment, and finds that firms where the MPL is higher than the wage — firms which in a neoclassical model would have a large excess demand for labor — do not shed labor any more slowly than other firms.     

Government health policy and hospital labor costs: the effects of wage and price controls on hospital wage rates and employment

This study examines the rapid growth of hospital wage rates and employment levels over the past decade, with particular attention to the period 1971-73, when wage and price controls were in effect throughout the economy. The analysis shows that the hospital regulations under the Economic Stabilization Program reduced real hospital wages below what they would have been in the absence of controls; a similar but smaller effect of the controls on hospital employment levels is also shown. This suggests that if the current HEW proposal for hospital cost containment is enacted, its impact would be a significant decrease in the rate of growth of hospital wages and employment.     

Specification of dynamic wage-price relations in Poland (1980–1991)

This paper focuses on the analysis of wage-price relationships during the period 1980–1991 in Poland. The dynamics of wage and price series under radical structural changes are examined, as well as the impact of earlier sharp price increases. The process of wages-to-prices adjustment both in the long- and short-term is analysed. The hypothesis that the introduction of economic reform (at the beginning of 1990) would result in a tendency towards the stabilization of real wages is investigated. This is done through integration and cointegration analysis of wage and price series with special attention being paid to the problems arising from theI(2) character of the variables investigated. The concept of polynomial cointegration is applied to formulate error correction terms for the short-run model of wages. The computations have been made using quarterly data. The results reflect an inhomogeneity of the period investigated, especially the effects of the introduction of economic reform at the beginning of 1990. The nonstationarity of real wages is confirmed, but not their tendency towards stabilization.     

How much does it cost to be a scientist?

We examine the academe–industry wage gap. Once self-selection and different personal characteristics of academic and industrial scientists have been taken into account the wage gap narrows from 28 to 13 %. The counterfactual wage faced by an academic scientist increases with time spent on development and decreases with time spent on research. This finding challenges the idea of a solely negative relationship between science and wages. We further find that preferences for science augment the relationship between research orientation and wages. Overall, the results have implications for policy makers that aim to increase development oriented research activities at universities, individual scientists thinking about whether to pursue a career in industry or academe, and managers trying to hire academic scientists.     

加快完善社会主义市场经济体制的理论认知与现实路径

我国经济体制由计划经济向市场经济转变是历史的选择。社会主义市场经济具有坚持公有制为主体、多种所有制经济共同发展和按劳分配为主体、多种分配方式并存,把社会主义制度和市场经济有机结合起来,不断解放和发展社会生产力的显著优势,是中国共产党和中国人民的伟大创造。新时期,应紧紧围绕"政府和市场"关系这一核心问题,按照"市场机制有效、微观主体有活力、宏观调控有度"的要求,多措并举,加快完善社会主义市场经济体制。     

The role of R&D and input trade in productivity growth: innovation and technology spillovers

Productivity improvements generally are driven by technology innovation and its spillovers. This study explores the role of R&D investment and intermediate input trade in productivity growth using country-industry-level data for 25 advanced and emerging economies. This paper confirms that R&D investment and intermediate input import/export (both intra- and inter-industry) with technologically advanced economies play important roles in productivity growth in non-frontier countries. We further find that the productivity gains of technology spillovers via input trade channels are likely larger for countries/industries where technology converges to the frontier. These findings imply that the recent slowdown in R&D investment and intermediate input trade in some advanced economies may contribute to declining productivity growth. The potential productivity improvements from R&D investment and free trade as well as the importance of domestic capacity in facilitating technology spillovers should be recognized.

     

The Malthusian intermezzo: Women's wages and human capital formation between the late Middle Ages and the demographic transition of the 19th century

The paper offers a new explanation for ‘the great conundrum’, the acceleration of population growth in England in the second half of the 18th century. It is argued that it was not only population growth that was ‘different’ in England, but the stagnation of the rise of literacy and of human capital in general, seems to be an anomaly of this period. This ‘conundrum’ has been explained in the following way. It is demonstrated that in England the gender wage gap increased a lot during the early modern period, which was caused by: (a) the switch from post Black Death labour scarcity to labour surplus, which in particular harmed the economic position of women, and (b) changes in the structure of agriculture, leading to the rise of large-scale, capital intensive and labour extensive farms, which had a very limited demand for female (wage) labour. This is also suggested by the fact that on the Continent (in the Netherlands) a much smaller decline of female wages occurred, because there family farms continued to be quite important. Moreover, the decline of English wages had important effects on its demographic development. It helps to explain the decline of the average age of marriage of in particular women between 1600 and 1800, and the related increase in fertility that occurred in this period — resulting in a much faster rate of population growth after 1750 than elsewhere in Western-Europe. It also helps to explain the stagnation in human capital formation that occurred during the 18th and early 19th century — again a feature peculiar for the English development in these years. The explanation of ‘the great conundrum’ is therefore intimately linked to the changing position of women on the labour market and within marriage.     

Topics in macro-modelling of East European countries in the period of transition

Central and European former Centrally Planned Economies (CPEs) entered a period of transition towards market economies. The evolution is marked by a transition from shortage- to demand-determined economies, associated with the abandonment of price control and the introduction of tight wage control. Stabilization programmes (in Poland from 1990), implementing tough deflationary fiscal and monetary policies, brought about the suppression of hyperinflation. The high adjustment costs — deep recession, high rates of unemployment — are characteristics of the early '90s. The deregulation of the public sector and the building of the private one commenced, and will be a long-lasting process. To meet the changes in economic regimes and mechanisms, the existing models had to be adequately respecified and new models constructed. The large W-5 macromodel for Poland, which covers the final and intermediate demands, had to be extended to introduce the market adjustment mechanisms and, more broadly, the financial flows. To meet the needs of short-term financial policies, new quarterly models had to be built, as, for instance, the WK macromodel for the Polish economy. The paper discusses the major problems of the models' specification under the data constraints.     

Evidence on gender wage differentials in Greece

The paper studies the earnings differential between genders in Greece employing quantile regression analysis and applying a variant of the selection-adjusted Oaxaca and Ransom (1994) decomposition methods to explain the components of the wage differentials. The results suggest that, in Greece, substantial differences in wages between men and women can be identified. Decomposing the wage gap between genders the results show that the difference in wages is attributed mainly to the unexplained part and to a lesser extent to the employee’s endowment. In all deciles of the wage distribution the wage differentials between genders are not explained by differences in the productive characteristics of the employed but rather they constitute the unexplained part of the wage differential.

New capital accumulation in transition economies: implications for capital-labor and capital-output ratios

This paper investigates the impact of new capital accumulation on capital-labor and capital-output ratios in 26 transition economies (TE) of Central and Eastern Europe and former USSR. Using a perpetual inventory method, we estimate the amount of capital accumulated in these countries since the start of market reforms and compare it to results for developed countries and largest emerging market economies. We found that on per worker basis, capital accumulation in TE is lagging far behind that of their mature market neighbors in European Union. Disparities in capital-output ratios were not as pronounced, as higher capital-labor ratios were reached in economies with higher levels of GDP per capita. Regression analysis indicates that capital per worker was accumulated faster in TE having higher saving rates, relatively higher priced labor, closer proximity to Western Europe, and higher manufacturing share in the economy. The K/Y levels were influenced by the same determinants except for relative input costs.     

Anticompetitive Employment

Scholars, antitrust agencies, and policy makers have historically paid little attention to anticompetitive practices in labor markets. This was largely due a misconception that antitrust law is meant to govern conventional markets in which goods and services trade, rather than govern labor markets. Antitrust law may also offer a poor remedy to redress employers who enter no-poaching agreements or otherwise impair competition. The primary tension involves antitrust's purpose, which is to promote “consumer welfare.” To identify whether conduct eroded consumer welfare, courts tend to scrutinize whether prices increased. But here, lessening wages can enable firms to sell goods at cheaper prices, benefiting consumers. Another issue is that the typical restraint affects only a smattering of workers instead of lessening wages throughout the greater market. This article uses empirical analyses to show that antitrust should promote labor's welfare as it does consumer welfare, and it argues that enforcement must condemn labor cartels as per se illegal. The research demonstrates that labor cartels are more pernicious than restraints in product markets, as employers can lessen wages with less effort than in product markets. Antitrust should even proscribe no-poaching agreements formed for a legitimate purpose (e.g., to protect trade secrets) because employers could have achieved the same goals using less coercive means; the noncompete agreement, at least, provides labor with a semblance of notice and bargaining power without drawing antitrust scrutiny. The prohibition of labor cartels would thus promote competition and consumer welfare, especially in minimum wage labor markets.     

Testing for Structural Change in Cointegrated Relationships: Analysis of Price–Wages Models for Poland and Hungary

In previous studies concerning short- and long-run relationships for price–wage models, the cointegration analysis has been developed assuming the existence of a unique cointegration parametrisation. These empirical results reveal the presence of significant relationships, both in the short and in the long run, among prices, wages, labour productivity and exchange rate. In this paper we intend to develop the possibility of a more general type of cointegration, allowing for a change at an unknown time period in the sample. At this end we will consider mainly the long-run relationship among these variables using the testing procedure suggested by Gregory and Hansen (1996a,b). This permits us to consider a multivariate extension of the endogenous break univariate approach and, in the meantime, this enables us to test for cointegration in the presence of possible structural breaking cointegrated relationships under the alternative. The empirical analysis of a multivariate model for price–wage relationship both for Poland and Hungary, over the period 1970–1996, is presented and discussed.     

Corporate criminal liability and optimal firm behavior: internal monitoring versus managerial incentives

Legislation addressing corporate criminal liability has been the subject of worldwide debate ever since the financial scandals of the early 2000s. Under current regimes, firms must observe such compliance requirements as internal monitoring mechanisms, the purpose of which is inducing firms to detect the wrongful conduct of their agents. We develop an analytical framework for identifying when, and to what extent, firms may find it beneficial to adopt these regulatory devices. We conclude that more productive firms, those operating in sectors with more market power, and firms whose managers have more opportunities for criminal activity are more likely to prevent wrongful conduct—either through monitoring or the payment of efficiency wages. When the potential returns to illegal activities are high or the firm is large, internal monitoring is probably the optimal strategy of crime prevention; in contrast, smaller firms typically proceed by paying efficiency wages (or ignoring crime). This paper also analyzes the role of the State’s legal capacity as well as the effects of interactions between the structure of reputational losses and the firm’s market power.     

Can underemployment persist in an expanding economy? Clues from a non-Walrasian OLG model with endogenous longevity

This paper aims at casting a new light on the persistence of underemployment in emerging economies, by examining the relationship between labour market imperfections and longevity changes. For that purpose, we develop a two-period OLG model where longevity depends positively on the real wage, but negatively on the underemployment level, which both result from wage negotiations between a trade-union, representing workers (i.e. young generation), and the management, representing capital-holders (i.e. old generation). The existence, uniqueness and stability of a non-trivial steady-state equilibrium are studied. The distribution of bargaining power is shown to be a major determinant of the short run and long run dynamics of employment, production and longevity. The dynamics is also shown to be significantly sensitive to the precise form under which job quality affects longevity.

On the employment effect of noncompliance with the minimum wage law

A major result of the economic literature on minimum wage noncompliance is that a competitive employer who opts not to comply with the minimum wage law will employ less labor than he would have in the absence of a law. The reason for this is that noncompliance entails the risk of getting caught and punished, consequently raising the marginal cost of labor to the employer. An implicit assumption underlying this result is that noncompliance does not affect the free market wage rate facing the competitive employer. The present note shows that noncompliance will bring about a fall in the market wage rate and that if employers and workers are risk neutral, the market wage rate will fall in a way that leaves the marginal cost of labor intact. Consequently, the enactment of a minimum wage law, if not accompanied by sufficient enforcement to induce compliance, will have no effect on the level of employment.