Article Title

Wage Determination under Plan and Early Transition: Bulgarian Evidence Using Matched Employer-Employee Data

Authors

Derek C. Jones

Type of Work

Article

Date

6-2005

Journal Title

Journal of Comparative Economics

Journal ISSN

0147-5967

Journal Volume

33

Journal Issue

2

First Page

227

Last Page

243

DOI

10.1016/j.jce.2005.03.004

Abstract

Using a matched employer-employee panel data set, we find non-competitive forces dominate wage determination under the planning regime in Bulgaria. During the early transition, the process becomes more market-driven, although a significant role remains for other factors. The preferred specifications are not baseline models restricted to conventional dimensions of human capital; rather, they always include firm and person fixed effects along with other firm and individual attributes. Depending on the particular specification, returns to education at least double during the transition. Although the significance of human capital variables is insensitive to the inclusion of firm effects, the findings for other variables are sensitive to the inclusion of fixed effects.

Notes

JEL Classification: J24, J31, P23, P31

Hamilton Areas of Study

Economics

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