Index. adjusted wage gap, 9, 176, 198, , , , , 241n19 Albania, 44, 54, 287, 288, 289 Atkinson index, 266, 277, 281, 281n1
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1 Index adjusted wage gap, 9, 176, 198, , , , , 241n19 Albania, 44, 54, 287, 288, 289 Atkinson index, 266, 277, 281, 281n1 Baltic Countries (BCs), 1, 3 6, 8, 10, 11, 13, 27, 29, 30, 41, 42, 47, 54, 94, , 123, 127, 132, 135, 144, 148, 173, 198, 285, 302 Belarus, 19, 254, 289, 290, 301, 302 Blinder Oaxaca (B O) decomposition technique, , , 222, Bosnia, 19, 65, 66, 254 Bulgaria, 5, 19, 20, 44, 46, 53, 65, 66, 70, 95, 98, 125, 132, 151, 156, 176, 199, 205, 209, , 272, 273, 276, 277, 278, 287, 293 business freedom, 4, 61, 70, 73, 78 80, 81, capital assets, 74, 75, 80, 85, 89n3 capital income, 13, 16 capital intensity, 67 68, 73, 74, 75, 78 capital labour substitution, 4, 60, 75, 87 capital output ratio, 61, 68, 73, 75, 76, 87 capitalism, 13, 28, 63, 176, 199, 209 models of, 29, 120 patrimonial, 13 post-socialist, 302 Central and Eastern European Countries (CEECs), 4, 5, 8, 10, 13, 20, 23, 29, 30, 41, 42, 65, 94, , 123, 127, 135, 144, 148, 173, 198, 285, 290, 298, 302 Commonwealth Independent States (CIS), 11, , 287, 290, 298, 299, 301, 302 Competition Policy (CP),4, 16, 42 43, 44, constitutions/constitution, 2, 9 of Bulgaria, 253, of CEECs and BCs, 254 individualisation as a trend of, of Lithuania, 253, modern European, , 250 of Poland, 253, of Romania, 253, post-world War II, 47, 251 and social rights, and taxation norms, UK, 253 coordinated market economies (CMEs), 28 credit market freedom/credit freedom, 61, 70 73, 78 80, 85, 86 Czech Republic, 21, 25, 29, 53, 61, 62, 64, 65, 80, 86, 89n6, 89n7, 95, 98, 127, 151, 154, 176, 199, 204, 206, 209, 215, 254, 275, 289, 291, 292, 294, 297 Economic Freedom World (EFW) database, 175, 208, 240n18 education composition, education groups data for empirical analysis of, , 195n1 and descriptive evidence of income inequality, and econometric analysis of income inequality, effect of deregulation on, 185, 188 hourly wage inequality within, , 190 hourly wages in pooled sample and primary educated workers, , hourly wages in secondary and tertiary educated workers, ,
2 308 Index education groups continued and labour market institutional settings, , median hourly wage by, Theil index decomposition of hourly wage inequality by, , 194 and union density of workers, 185, 188 and wage coordination, and workers employment status, education mismatch index, 95 96, emigrants, 5, 95, 98, 100, 103, 105, 113, 114n3 emigration, 93 95, 114n2 crude rate of, , and education composition of employment and population, and employment rates by education in NEUMs, and employment rates in NEUMs, in NEUMs, and wage inequality, see also emigration effects on wage inequality emigration effects on wage inequality crude rate of emigration and wage inequality, data sources and variables of study, and education composition of employment and population, hourly wages inequality in primary educated workers, hourly wages inequality within and between education groups, 112 overall hourly wages inequality, real hourly wages by educational attainment, 108, employment, see employment protection legislation (EPL); employment rates; permanent employment; temporary employment employment protection legislation (EPL), 26, 27, 146, 151, 167n2, 172, 207 employment rates, 5, 62, 95 and education, and education composition of employment and population, emigration and, , 106, 113, 115 female, 102, 294, 297 and wage inequality, 103, 105 for women with/without children, 294, 297 equal absolute sacrifice principle, 267, 268 error correction mechanism (ECM), 4, 74, 76, 79, 80, 81 Estonia, 5, 19, 44, 53, 95, 106, 110, 113, 151, 154, 155, 176, 200, 204, 206, 209, 215, 254, 294 EU-15 Western countries, 22 23, 60, 63, 65 69, 72 73, 93, 98 99, 102, 106, 113, 173 EUKLEMS database, 61, 80 European Bank for Reconstruction and Development (EBRD), 21, 42 transition/reform indicators, 42 46, 49, 52, see also transition refoms European constitutions, 9, , , 257 European Court of Human Rights (ECHR), 248, , 253, 258, 259 European legal systems, 9, 28, 29, 247, 248, , 256 European legal traditions, 247 solidarity principle in, , 250, 252 spillover effects of, European Union (EU) citizenship, and constitutional norms on taxation, and constitutional social rights, Court of Justice, 250, 251, 260, 262
3 Index 309 European Convention of Human Rights, 251 legal framework, 9, 28, 29, 247, 248, , 256 membership, 9, 252, 253, 254 see also European constitutions; European Court of Human Rights (ECHR); European legal traditions; European Union Statistics on Income and Living Conditions (EU-SILC) European Union Statistics on Income and Living Conditions (EU-SILC), 5, 7, 10, 95, 96, 114n4, 120, 121, 123, 124, 129, 133, 137, 140n3, 151, 167n4, 167n5, 174, 179, 181, 198, 200, 202, , 279 Eurostat, 48, 95, 100, 114n5, 125, 162, 167n6, 273, 275, 276 former Soviet Union countries (FSU), 12, 13, 26, 27, 30, 41, 42, 47, 55 Formerly Planned Economies, 9, 12, 14, 21, 29, 41, 63, 70, 93, 125, 126, 127, 247, 273 functional income distribution, 14 16, 21 22, 43, passim see also labour shares gender earnings inequality in NEUMs, 198 adjusted gender earnings gap, adjusted gender earnings gap by quantiles, historical perspective of, hourly earnings by employment status, 203 impact of labour market institutions on, , job characteristics and, labour market institutions relevance in, male/female hourly earnings, microdata source on, 200 raw earnings gaps, gender wage gap (GWG), 9, 27, , , 239n1 labour market institutions and, in transition, unadjusted and adjusted, , and wage decomposition, within public and private sectors, see also gender earnings inequality in NEUMs; gender wage inequality in Western Balkans gender wage inequality in Western Balkans, , BO decomposition data on wage gap, BO decomposition in the public and private sector, data description of, 228 differences in returns versus unobserved heterogeneity, , gender wage gap in transition, gender wage gap and wage decomposition, labour market institutions and gender wage gaps, methodology of study on, and role of labour market regulation, unadjusted and adjusted wage gaps in males, 229 unadjusted and adjusted wage gaps within public and private sectors, unadjusted wage gap and labour market deregulation, 231 Germany, 21, 120, 123, 151, 154, 162, 163, 164, 217n1, 249, 293 Gini coefficient/gini index, 46 48, 51 52, 54, , 113, 128, 154, 155, 177, 190, 201, 266, 274, 277, 289, 294 glass ceiling effect, 200, 204, 205, 209, 215 global crisis, 1 3, 8, 18, 30, 95, 119, 123, 144, 174, 190, 198, 276 globalisation, 14, 15, 17, 20, 22, 25, 59, 60, 69, 77 78, 88, 171 see also trade openness
4 310 Index GMM estimator/estimation, 3, 4, 49 50, 51, 80, 85 great recession, 3, 13, 14, 18, 121 Herzegovina, 19, 65, 66, 254 household income, 6, 15, 16, 18, 21, 23, 28, , , , 271 Human Rights Act (1998), 251, 253 Hungary, 19 20, 21, 25, 29, 53, 62, 64, 65, 80, 86, 89n6, 89n7, 95, 98, 125, 132, 151, 156, 176, 199, 201, 206, 209, 215, 248, 254, 272, 275, 276, 292, 294, 297, 302 ICT capital, 61, 65, 80, 81, 82, 83, 85, immigrants, 95, 260, 262 immigration, 93 94, 99 income, see capital income; functional income distribution; household income; income distribution; income inequality; income redistribution; individual income; labour income; personal income distribution income distribution functional versus personal, 14, 16, 21 22, 30 migration flows and, primary, 23 27, 29 secondary and tertiary, 23, see also wage distribution income inequality aversion to, see inequality aversion education and, see education groups effects of migration on, emigration and, 93 95, see also emigration effects on wage inequality factors/drivers of, 16 18, 19 20, 23 30, 265 framework for, gender and, see gender earnings inequality in NEUMs; gender wage inequality in Western Balkans government intervention in curbing, 20 impact of transition reforms on, 16, 20 21, income mobility and, and labour market duality, see labour market duality and labour market institutional settings, personal, see personal income inequality and sequencing of reforms, systemic change and, and trade and technology, and welfare state and taxation systems, income mobility, 2, 5, 6, 20, 27, and age of workers, , 138 data for assessment of, drivers of, in Eastern versus Western Europe, and education levels, 130, 132, 138 and employment status, 130, , 138 and Fields Ok (FO) index, , , 137 gender and, and household head attributes, 123, 124, 129, , and household size, 130, 132 and income growth, 131, 132, 133, 136, 138 and income inequality, , and labour market institutional settings, 133, 138 measures, 140 methodology for measurement, and the presence of children and elderly, 130, 132, 136, 138 sample characteristics for study of, 124, 139 income redistribution, , 279 heterogeneity of preferences for, social preferences estimation for, see also inequality aversion
5 Index 311 individual income, 1, 15, 16, 23, 119, , 127, 277 individualisation, inequality aversion alternatives for estimation of, approach for estimation of, Atkinson indices with, 281 data for, definition of, 267 estimated coefficients of, , 280 heterogeneity in, heterogeneous versus homogeneous, and objective inequality, outcomes of, instrumental variables (IV) approach, 4, 73, 123, 129 Ireland, 22, 98, 99, 123, 141n4, 151, 154, 273 Italy, 120, 121, 151, 154, , 166, 251, 256, 262n1 job polarisation, 17, 24, 171 labour compensation, 65, 73, 86 Labour Force Survey (LFS), 8, 222, 228, 240n9, 241n20 labour income, 8, 13, 16, 17, 23, 63, 66, 82, 85, 86, , 152, 179, 198, 201, 210 see also labour shares labour market/labour markets, 23, 54, 108 duality in, 27, 133 see also labour market duality flexibility, imbalances in, 15, 16, 18, 145 liberalisation of, 12, 26 27, 144 regulations, 59, 61, 63, 68 73, 78 80, 86 88, 89n4, 215, 231, reforms, 17, 42, 70, 89n4, 89n6, 147, 148, 156, 163 see also labour market deregulation; labour market freedom/ labour freedom; labour market institutional settings/labour market institutions labour market deregulation, 4, 7, 8, 17, 61, 86 88, 170, 172, , 185, 188, 208, 209, , 215, , 238 labour market duality B O decomposition of the hourly wage gaps, , components of earnings inequality, components of hourly wages gap between permanent and temporary workers, 156, , 166 conceptual framework of, data and preliminary evidence of, decomposition technique for analysis, hourly earnings by employment status, hourly wages according to EU-SILC and SES, 166 hourly wages gap of permanent versus temporary workers, variables used in the Mincerian equation, 165 labour market freedom/labour freedom, 61, 70 72, 78 80, 82, 86 87, 89n5 labour market institutional settings/ labour market institutions, 6 9, 16, 25 27, 63, 64, 119, 133, 138, 171, 187, in Central and Eastern European countries, 216 deregulation, 4, 7, 8, 17, 61, 86 88, 170, 172, , 185, 188, 208, 209, , 215, , 238 role in gender earnings gap, , union density, 7, 8, 26, 170, 175, 176, 181, 185, 188, 198, 208, 209, 212, 231 wage coordination levels, 7, 8, 170, 172, 176, 187, 188, 198, 212, 231
6 312 Index labour productivity, 64 65, 77, 81 83, 164 labour shares analysis parameters, and business freedom, 70 and capital output ratio, 61, 68, 73, 75, 77, 87 causes of decrease in, 59 60, 67 and credit market freedom, 72 definition of, 65 determinants of, dynamics of, 60 and economic determinants, 76 and economic freedom indicators, effect of institutional factors on, 81 impact of technological factors on, indicators of technological advances, industry-level analysis of, and international trade, and labour market freedom, 71 and labour productivity growth, literature on, and market regulations, 68 73, movements in, real capital/gdp ( ), 67 relative TFP ( ), and technological factors and market freedom, 82, 85, 88 trade openness and, 77 78, 79 in transition economies and in the EU-15, see also capital labour substitution; globalisation; market regulations; technological changes/advances Latvia, 6, 44, 53, 95, 98, 100, 107, 126, 127, 137, 151, 155, 156, 176, 200, 206, 209, 215, 254, 275, 276, 294 legal origins theory, 9, 28, , 250, 251 liberal market economies (LMEs), 28, 133, 136 liberalisation, 12, 20, 26 27, 41 43, 64, 147, 175, 207, 216 of labour markets, 12, 26 27, 144 price, 4, 15, 16, 19, 20, 43, 44, 47, 52 54, 55, 89n4, 286 trade, 44, 46, 52, 54 Lithuania, 5, 9, 44, 53, 95, 98, 100, 107, 110, 113, 127, 151, 154, 155, 176, 199, 200, 206, 209, 215, 248, 253, 254, , 275, 294, 297 Macedonia, 8, 9, 44, 47, 54, 65, 66, , 226, , 230, 232, , 240n9, 240n11, 241n20, 254 market regulations, 59, 61, 68 73, 78 80, 86 88, 89n4, 215, 231, migrants, 23, 93, 100, 103, 105 return, 98 temporary, 98 see also emigrants; immigrants migration, see emigration Mincer equation, 149, 152, 155, 156, 165 Montenegro, 8, 9, , 226, , , 240n9, 240n11, 254 neoliberalism, 29, 290, , new European Union members (NEUMs), 12, 18, 26, 27, 30, 120, 125, 131 dual labour markets in, education mismatch index in, 106 effects of emigration on wage inequality in, emigration and employment rates by education in, emigration and employment rates in, emigration in, hourly earnings by employment status, 203 impact of education groups on wage inequality in, , , male/female hourly earnings, net migration rates in,
7 Index 313 overall hourly wages inequality in, real hourly wages by educational attainment, 108, wage differentials in, , see also gender earnings inequality in NEUMs non-ict capital, 61, 80, 81, 82, 85, OECD countries, 26, 59 60, 63 69, 72, 78, 85, 87 88, 89n10, 89n11, 124, 144, 167n2, 175 Penn World Tables, 61, 65, 66, 69, 72, 75, 76, 79 permanent employment, 6, 7, 133, 145, 148, 163, 164, 174, 176, 184, 188, 214 personal income distribution, 14 16, 22, 23, 30, passim, 151 see also personal income inequality personal income inequality effect of growth on, empirical model of drivers of, impacts of transition reforms on, preliminary evidence of, transition patterns and, see also transition reforms Poland, 5, 9, 19 20, 21, 25, 29, 53, 62, 64, 65, 70, 89n6, 89n7, 95, 96, 125, 151, 154, 155, 159, 162, 199, 201, 206, , 275, 279, 292, 294, 297, 302 poverty, 11, 19, 120, , 261, 289, 294, 299, 302 price liberalisation (PL), 4, 15, 16, 19, 20, 42 43, 44, 47, 52 55, 89n4, 286 principle of progression, Principle of Solidarity, see solidarity principle privatisations, 16, 19, 20, 21, 22, 27, 43 45, 53 55, 62, 63, 78, 89n4, 147 pro-inequality, 4, 16, 19, 21, 48, risk aversion, 225, Romania, 9, 19, 44, 46, 53, 62, 65, 66, 70, 71, 95, 96, 100, 123, 132, 141n3, 151, 155, 156, 176, 201, 204, 206, , 272, 273, 276, 277, 278, 293 routinisation hypothesis, 17, 171 Russia, 11, 19, 20, 21, 44, 47, 49, 52, 54, 254, , self-employed income, 65, 202, 213, 214 Serbia, 8, 9, 65, , 225, 226, , 240n9, 240n11, 254 skill-biased technical change (SBTC), 17, 23, 24, 25, 88, 170, 171 Slovak Republic, 19, 29, 53, 62, 64, 65, 89n6, 95, 126, 132, 151, 176, 199, 206, 209, 275, 279 Slovenia, 25, 29, 44, 47, 61, 62, 64, 65, 80, 86, 95, 98, 125, 137, 151, , 159, 162, 173, 176, , 206, 209, 215, 254, 273, 279, 292, 294, 297, 298 Small Scale Privatisation (SSP), 42 43, 53 social spending, 285, 287, 288, 292, 294, 298, 299 social welfare function (SWF), 266, 267, 277 socialism, 10, 11, 63, , 287, 290, 299, 302 solidarity principle, 2, 9, 29, , 250, 252 Soviet Union, 1, 3, 10, 12, 13, 20, 30, 41, 42, 44, 47, 55, 167n2, 198, 225, 298 Spain, 98, 99, 120, 121, 125, 162, 256 state socialism, 10, 11, 285, 287, 290, 299 sticky floor effect, 200, 204, 205 Sweden, 22, 141n3, 151, 153, 157, 158, 159, 160, 166, 291, 293, 294, 296 taxation systems, 18, 19, 27 29, 247, 248, , 268
8 314 Index technological changes/advances, 4, 14, 15, 20, 25, 59, 77, 82, 87, 88, 171 indicators of, real capital over GDP, 67 relative TFP ( ), temporary employment, 8, 27, 136, 138, 145, 146, 147, , , 175, 179, , 188, 208, , 215 Total Factor Productivity (TFP), 67 68, 73 76, 78 82, 87 trade liberalisation, 44, 46, 52, 54 trade openness, 22, 69 70, 73, transition economies, 3, 4, 29, 42, 75, 147, 162 average labour shares in ( ), business freedom in, 70 capital intensity in, 67 68, 73, 74, 75, 78 credit market freedom in, 72 economic freedom indicators in, indicators of technological advances, industry-level analysis of labour shares in, international trade in, labour market freedom in, 71 literature on, market regulations in, movements in labour shares and determinants in, real capital/gdp ( ), 67 relative TFP ( ), trade openness in, 77 78, 79 transition reforms, 16, 20 21, cluster analysis for measurement of, correlation between EBRD reform indicators, impacts on income inequality, outcomes of the study on, patterns and inequality, pro-inequality effects of, 16, speed and sequencing models, 45 UK, 22, 120, 121, 125, 136, 141n4, 151, 171, 174, 250, 251, 253, 273, 280 Ukraine, 19, 44, 52, 226, 254, 287, 289, 302, 303 unadjusted wage gap, 176, 200, 202, , unemployment, 16, 20, 22, 26, 27, 63, 87, 105, , 133, 136, 137, 144, , 162 varieties of capitalism approach, Visser Institute for Advanced Labour Studies database, 175, 208 wage disparity/inequality, see income inequality wage dispersion, 5, 19, 24, 25, 26, 43, 94, , , 144, 154, 199, 225 wage distribution, 23, 152, 171, 175, 205, 206, 208, 225 see also income distribution war, 47, 48, 49, 51, 52 welfare states/systems, 6, 10, 18, 27 29, 49, 138, 212, 247, 250, 260, 262, 273 and CIS reforms, corporatist model, 28, 284, 285, 286 directions of change in, and employment rates for women with/without children, features of, income inequality in, 294 labour market protection expenditure and unemployment rate, 293 liberal model, 28, models of, policy developments in the CEECs, poverty rate before and after social transfers, public social protection expenditure as a percentage of GDP, social-democratic model, 28, 284, 285
9 Index 315 social spending as a percentage of GDP, under state socialism, welfare efforts in transition countries, and welfare provision, , Western Balkans (WBs), 8, 9, 12, 30, 41, 42, 44, 55, , 227, 229, 231, see also Macedonia; Montenegro; Serbia workers, 18, 24 25, 59, 61, 63, 85 86, 88 B O decomposition of the hourly wage gaps of, , components of hourly earnings gap between permanent and temporary, 156, , 166 crude rate of emigration and wage inequality, effect of education groups on wage inequality of, , , emigration of, and employment protection, 26, 27, 64, 133, 146, 151, 167n2, 172, 207 female, 8, 100, 102, 147, 199, , 210, 224, fixed-term, 133, 173 high-skilled/highly-educated, 17, 25, 65, 88, 94, 103, 170, 172, 176, 184, 185 hourly earnings by employment status, hourly wages according to EU-SILC and SES, 166 hourly wages gap of permanent versus temporary, low-skilled/low-educated, 7, 17, 26, 27, 59, 64, 65, 88, 94, , 148, 162 male, 8, 120, 146, 212 male/female hourly earnings of, manual, 25 medium-skilled/medium-educated, 65, 88, 184 migrant, 93 non-manual, 25 non-unionised, 172, 206 older, 129, 146 permanent, 7, 26, 27, , , 172, 184, 187, 206 primary educated, 175, , 188 real hourly wages by educational attainment, 108, routine, 171 secondary educated, 7, 175, 182, temporary, 7, 26, 27, 120, 133, 138, , , 172, 184, 185, 187, 206 tertiary educated, 7, 175, 182, unionised, 172, 206, 214 younger, 129, 147, 173 Yugoslavia, 1, 3, 13
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