We estimate a double hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation, and an unreported cash supplement). We estimate the probability of under-reporting for...

The paper looks at the effect of exceptionally large fluctuations in the level of public sector pay on the number and quality of workers moving from the private to the public sector in Hungary. Special emphasis is put on the unique pay rises taking place before and after the 2002 elections. The...

The effect of minimum wages on employment has been a matter of debate for more than a decade. Apart from a few cases (Puerto Rico, Indonesia, Columbia) the empirical works analysed the aftermaths of minor increases in the minimum wage, and yielded mixed results. Hungary 2000-2002 provides a...

We study the undeclared work patterns of Hungarian employees in relatively stable jobs, using a panel dataset that matches individual-level self-reported Labour Force Survey (LFS) data with administrative data from the Pension Directorate for 2001-2006. We estimate the determinants of undeclared...

We study the entry to formal employment and earnings of a large sample of convicts released from Hungarian prisons in 2002-2008. We identify the effect of the prison service on postrelease careers by exploiting differences in the timing of incarceration, on the one hand, and estimating fixed...

We study the entry to formal employment and earnings of a large sample of convicts released from Hungarian prisons in 2002-2008. We identify the effect of the prison service on post-release careers by exploiting differences in the timing of incarceration, on the one hand, and estimating fixed...

We look at the effect of school starting age on standardized test scores using data covering all grade four and grade eight students in Hungary. Instrumental variables estimates of the local average treatment effect suggest that children generally gain from starting school one year later and the...