Eriksson, Tor Viking5; Pytlikova, Mariola5; Warzynski, Frederic5
1 Department of Economics, Aarhus School of Business, Aarhus BSS, Aarhus University2 Centre for Research in Integration, Education, Qualifications and Marginalization (CIM), Aarhus School of Business, Aarhus BSS, Aarhus University3 Center for Corporate Performance (CCP), Aarhus School of Business, Aarhus BSS, Aarhus University4 Department of Economics and Business Economics, Aarhus BSS, Aarhus University5 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
In this paper, we look at the evolution of the Czech labor market, and its wage structure in particular, using a linked employer-employee dataset covering a large fraction of the Czech labor market over the period 1998-2006. We find evidence of (slightly) diminishing gender inequality, increased returns to human capital, especially to education. We investigate various hypotheses to explain that pattern. Moreover, we document a strong increase in within-firm wage dispersion and an only moderate increase in between-firm dispersion. We investigate various hypotheses related to transition towards a market economy, increased domestic and international competition and an increasingly decentralized wage bargaining to explain these patterns.