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Using a large and unexpected public wage increase in Hungary which changed the public wage premium in 2002 from -17 to … wage effects and a corresponding elasticity of 0.96. The spillover affected primarily the wages of males, young workers and … the highly educated. The analysis also finds that employers raised the wages of incumbent, rather than, newly hired …
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The paper analyzes the changes in the relative labor market position of the public sector employees, using both macro-level employment statistics and large wage surveys. While competitive employment decreased by more than 30 per cent during the transition, number of public employees have not...
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public wages are determined. Rigid public sector wages lead to perverse effects on private employment, while flexible public … wages lead to a stabilizing effect. Public employment also has important productivity and redistributive effects. …
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