Income, Schooling and Housing Wealth during Economic Reforms

We analyze the household income and housing endowment during the economic reforms in Slovakia. We compare households that entered the labor market before and after the economic reforms in 1990. On the one hand, the returns to education are significantly different for both labor market cohorts according to household consumption surveys. On the other hand, we analyze the determinants of housing wealth and their resulting impact on consumption. The results imply that old cohorts are characterized by lower returns to schooling, but higher housing wealth. As a result, we cannot identify a clear pattern of winners and losers in the transition.