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Public-Sector Wage Premium in Poland

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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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Table of Contents

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Introduction

Chapter 1 Evolution of the public sector in Poland during the period of economic transition

1.1. Shrinkage of the public sector

1.2. Dualism of the public sector

1.3. Comparing the incomparable: structures of employment in the public and private sectors

1.4. What does the employment structure tell us about the wage structure?

Chapter 2 Undertaking employment in the public sector in Poland

2.1. Theoretical aspects regarding the decision about choosing a workplace

2.1.1. Economic modelling of the benefits from having a job

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