Personal Earnings Inequality in the Czech Republic

This paper analyzes the inequality of personal earnings in the Czech Republic since the early transition from communism, using relative distribution method. It applies data from two surveys, Microcensus and Living Conditions, covering the period from 1988 to 2008. The trend suggested by many recent empirics, “hollowing of the middle”, was confirmed in the early stages of transition, but later subsided. Earnings polarization was apparent for all sex and education subgroups between the years 1988 and 1996. For international comparison the European dataset EU-SILC 2008 has been used, focusing on four countries: Austria, Germany, Hungary, and Poland. Earnings distributions by gender and education have been analyzed, establishing that male earnings distribution is more homogenous than female, and earnings of highly educated people are more concentrated in the middle than earnings of less educated people.