Wage inequality, labour market flexibility and duality in Eastern and Western Europe

Hölscher, Jens, Perungini, Christiano and Pompei, Fabrizio (2011) Wage inequality, labour market flexibility and duality in Eastern and Western Europe Post-Communist Economies, 23 (3). pp. 271-310. ISSN 1463-1377

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Abstract

In the last two decades a broad process of labour market reforms towards more flexible and liberal models has been taking place in Europe. For Central and Eastern European countries this evolution was an important dimension of the wider process of institutional change which accompanied their transition to market economies. This article presents the complex picture of EU countries at the outset of the recent crisis (2007) in terms of the components of earnings differentials, with particular emphasis on the dimensions of labour market flexibility identifiable with contractual arrangements (temporary versus permanent employment) and self-employment. Our main focus is on Central and Eastern European countries but we keep old EU members as benchmarks. Results highlight that different factors lie behind permanent/temporary and permanent/self-employed earnings gaps in the two regions. The dualism between regular and flexible jobs in the CEE labour market is mainly based on workers' attributes; in the Western EU the dualism is instead mainly driven by discrimination associated with labour positions.

Item Type: Journal article
Subjects: L000 Social Sciences > L100 Economics > L160 International economics and trade
DOI (a stable link to the resource): /10.1080/14631377.2011.595119
Faculties: Brighton Business School > Economic and Social Transition Research Group
Depositing User: business editor
Date Deposited: 23 Sep 2011 10:42
Last Modified: 28 Mar 2012 09:43
URI: http://eprints.brighton.ac.uk/id/eprint/9205

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