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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| Social Networking: |
| 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 and Periodicals: | 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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