Are Transition Economy Labor Markets Less Efficient at Matching Workers to Appropriate Jobs?

Authors

  • Vera A. Adamchik University of Houston-Victoria
  • Josef C. Brada Department of Economics, Arizona State University, Tempe
  • Arthur E. King College of Business and Economics, Lehigh University, Bethlehem

DOI:

https://doi.org/10.14665/1614-4007-21-1-001

Keywords:

Labor markets, Wage inefficiency, Job search, Stochastic frontier, Economic transition

Abstract

We examine the extent to which workers in transition and developed market economies are able to obtain wages that fully reflect their skills and labor force characteristics. We find that workers in two transition economies, the Czech Republic and Poland, are able to better attain the maximum wage available than are workers in a sample of developed market economies. This greater wage-setting efficiency in the transition economies appears to be more the result of social and demographic characteristics of the labor force than of the mechanisms for setting wages or of labor market policies.

Published

2015-01-03

Issue

Section

Papers