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Wage and employment effects of a wage norm: the Polish transition experience. NBB Working Paper No. 209, February 2011

de Crombrugghe, Alain and de Walque., Gregory (2011) Wage and employment effects of a wage norm: the Polish transition experience. NBB Working Paper No. 209, February 2011. [Working Paper]

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    Abstract

    Most transition countries used tax-supported wage norms in the early 1990's, as a part of their market liberalization programs. This paper analyses how a firm-level tax (or subsidy) on deviations from a pre-set wage norm may promote employment by rotating the labor demand curve perceived by the workers' union around the value of the norm. We derive the conditions such that it yields a positive employment effect. We test the effect of the norm on the wages on a sample of Polish firms in 1990 and 1991. The data support the role of the wage norm on the position of the perceived labor demand and the role of the tax rate on its slope.

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    Item Type: Working Paper
    Uncontrolled Keywords: Transition economies; labor market; unions; excess wage tax; employment.
    Subjects for non-EU documents: Countries > Poland
    EU policies and themes > Policies & related activities > employment/labour market > employment/unemployment
    EU policies and themes > Policies & related activities > employment/labour market > labour/labor
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > National Bank of Belgium (Brussels) > Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 22 Feb 2011 21:20
    Number of Pages: 32
    Last Modified: 22 Feb 2011 21:20
    URI: http://aei.pitt.edu/id/eprint/29762

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