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Public-Sector Wage Premium in Poland


Gabriela Grotkowska

This book assesses the size, structure and evolution of the public-private wage gap in Poland – a country frequently regarded as an example of a successful transition from a centrally planned economy to a market economy. The author extensively elaborates on the issue of the selection of employment, and reviews the available studies concerning the public-private wage gap in developed and developing countries, with a particular attention to the evolution of methodology. Furthermore, the author examines recent empirical studies on the public-sector wage premium. Contrary to former research, they have provided positive estimates of the average public-sector wage premium, with significant differences in terms of employee characteristics and local labour market conditions.

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A note on data sources used in the analyses



The Polish Labour Force Survey, or BAEL has been conducted in Poland since May 1992 by the Polish Central Statistical Office (CSO) and coordinated with the European Union Labour Force Survey. All countries, including Poland, conduct the survey in line with International Labour Organization (ILO) methodology.

The survey is conducted quarter-yearly (except for 1999, when only two surveys were carried out). Its panel-like design ensures that each consecutive wave of the survey involves half of the original respondents. In each wave, the sample consists of four elementary samples: two samples comprise people who were surveyed in the previous quarter, the next sample is made up of new respondents and the last sample includes subjects who were surveyed exactly a year beforehand. As each respondent is assigned an individual identification code, it is possible to analyse how his/her situation changes between the periods. The survey is conducted using the representative method. It studies only households – groups of people living together and sharing the means of living – occupying flats that were previously sampled by the CSO of Poland.

BAEL collects information from respondents through direct interviews conducted by interviewers who use standard paper forms (PAPI method) and electronic forms using mobile terminals or tablets (CAPI). It also conducts telephone interviews using electronic forms (CATI). In 2009 the sample comprised 218,245 observations, which nearly doubled in 2010 to 422,725. Since 2011, the number of observations ranged from 348,407 (2015) to...

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