Trade Protection and Industry Wage Structure in Poland

The authors examine the impact of Poland's trade liberalization in 1994-2001 on the industry wage structure. The liberalization was undertaken in preparation for Poland's accession to the European Union and was more pronounced in industries with larger shares of unskilled labor. Their anal...

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Main Authors:	Chor-ching Goh, Javorcik, Beata S.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURE AVERAGE PRODUCTION COSTS COMPETITIVENESS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS ECONOMIC IMPACT ECONOMIC STRUCTURE EMPIRICAL STUDIES EQUILIBRIUM EXPORTS FINANCIAL SERVICES FLEXIBLE LABOR MARKETS FOREIGN COMPETITION FREE TRADE GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH RATE HOUSING IMPERFECT COMPETITION IMPORT TARIFFS IMPORTS INCOME INCOME DISTRIBUTION INCOME INEQUALITY INEFFICIENCY INFLATION INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR REGULATIONS LABOR RELATIONS LABOR UNIONS LARGE CITIES LAWS LEVIES MARKET DISCIPLINE MARKET ECONOMY MARKET POWER MUNICIPALITIES NEW ENTRANTS OPEN ECONOMIES PLANNED ECONOMY POLITICAL ECONOMY PRIVATIZATION PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFITABILITY PROTECTIONISM REAL WAGES RENTS TARIFF BARRIERS TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS TRADE UNIONS TRANSPORT UNEMPLOYMENT URUGUAY ROUND WAGE INCREASES WAGE STRUCTURE WAGES WORKER PRODUCTIVITY WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2005/03/5711342/trade-protection-industry-wage-structure-poland http://hdl.handle.net/10986/8967

id	okr-10986-8967
recordtype	oai_dc
spelling	okr-10986-89672021-04-23T14:02:42Z Trade Protection and Industry Wage Structure in Poland Chor-ching Goh Javorcik, Beata S. AGRICULTURE AVERAGE PRODUCTION COSTS COMPETITIVENESS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS ECONOMIC IMPACT ECONOMIC STRUCTURE EMPIRICAL STUDIES EQUILIBRIUM EXPORTS FINANCIAL SERVICES FLEXIBLE LABOR MARKETS FOREIGN COMPETITION FREE TRADE GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH RATE HOUSING IMPERFECT COMPETITION IMPORT TARIFFS IMPORTS INCOME INCOME DISTRIBUTION INCOME INEQUALITY INEFFICIENCY INFLATION INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR REGULATIONS LABOR RELATIONS LABOR UNIONS LARGE CITIES LAWS LEVIES MARKET DISCIPLINE MARKET ECONOMY MARKET POWER MUNICIPALITIES NEW ENTRANTS OPEN ECONOMIES PLANNED ECONOMY POLITICAL ECONOMY PRIVATIZATION PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFITABILITY PROTECTIONISM REAL WAGES RENTS TARIFF BARRIERS TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS TRADE UNIONS TRANSPORT UNEMPLOYMENT URUGUAY ROUND WAGE INCREASES WAGE STRUCTURE WAGES WORKER PRODUCTIVITY WORLD TRADE ORGANIZATION WTO The authors examine the impact of Poland's trade liberalization in 1994-2001 on the industry wage structure. The liberalization was undertaken in preparation for Poland's accession to the European Union and was more pronounced in industries with larger shares of unskilled labor. Their analysis indicates that a decrease in an industry tariff was associated with higher wages being earned by workers employed in the industry, controlling for worker characteristics and geographic variables. The result is robust to including year and industry fixed effects, controlling for industry-level exports, imports, concentration, stock of foreign direct investment, and capital accumulation. The finding is consistent with liberalization increasing competitive pressures, forcing firms to restructure and improve their productivity, which in turn translates into higher profits being shared with workers. It could also be potentially attributed to trade liberalization lowering the costs of imported inputs, which enhances firm profitability. The result holds when skilled workers are excluded from the sample, thus suggesting that reductions in trade barriers benefited the unskilled in terms of an increase in wages. 2012-06-25T20:35:45Z 2012-06-25T20:35:45Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5711342/trade-protection-industry-wage-structure-poland http://hdl.handle.net/10986/8967 English Policy Research Working Paper; No. 3552 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Poland
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURE AVERAGE PRODUCTION COSTS COMPETITIVENESS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS ECONOMIC IMPACT ECONOMIC STRUCTURE EMPIRICAL STUDIES EQUILIBRIUM EXPORTS FINANCIAL SERVICES FLEXIBLE LABOR MARKETS FOREIGN COMPETITION FREE TRADE GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH RATE HOUSING IMPERFECT COMPETITION IMPORT TARIFFS IMPORTS INCOME INCOME DISTRIBUTION INCOME INEQUALITY INEFFICIENCY INFLATION INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR REGULATIONS LABOR RELATIONS LABOR UNIONS LARGE CITIES LAWS LEVIES MARKET DISCIPLINE MARKET ECONOMY MARKET POWER MUNICIPALITIES NEW ENTRANTS OPEN ECONOMIES PLANNED ECONOMY POLITICAL ECONOMY PRIVATIZATION PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFITABILITY PROTECTIONISM REAL WAGES RENTS TARIFF BARRIERS TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS TRADE UNIONS TRANSPORT UNEMPLOYMENT URUGUAY ROUND WAGE INCREASES WAGE STRUCTURE WAGES WORKER PRODUCTIVITY WORLD TRADE ORGANIZATION WTO
spellingShingle	AGRICULTURE AVERAGE PRODUCTION COSTS COMPETITIVENESS CONSUMER PRICE INDEX DEVELOPMENT ECONOMICS ECONOMIC IMPACT ECONOMIC STRUCTURE EMPIRICAL STUDIES EQUILIBRIUM EXPORTS FINANCIAL SERVICES FLEXIBLE LABOR MARKETS FOREIGN COMPETITION FREE TRADE GDP GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GROWTH RATE HOUSING IMPERFECT COMPETITION IMPORT TARIFFS IMPORTS INCOME INCOME DISTRIBUTION INCOME INEQUALITY INEFFICIENCY INFLATION INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR REGULATIONS LABOR RELATIONS LABOR UNIONS LARGE CITIES LAWS LEVIES MARKET DISCIPLINE MARKET ECONOMY MARKET POWER MUNICIPALITIES NEW ENTRANTS OPEN ECONOMIES PLANNED ECONOMY POLITICAL ECONOMY PRIVATIZATION PRODUCERS PRODUCT MARKETS PRODUCTION COSTS PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFITABILITY PROTECTIONISM REAL WAGES RENTS TARIFF BARRIERS TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRADE LIBERALIZATION TRADE REFORMS TRADE UNIONS TRANSPORT UNEMPLOYMENT URUGUAY ROUND WAGE INCREASES WAGE STRUCTURE WAGES WORKER PRODUCTIVITY WORLD TRADE ORGANIZATION WTO Chor-ching Goh Javorcik, Beata S. Trade Protection and Industry Wage Structure in Poland
geographic_facet	Europe and Central Asia Poland
relation	Policy Research Working Paper; No. 3552
description	The authors examine the impact of Poland's trade liberalization in 1994-2001 on the industry wage structure. The liberalization was undertaken in preparation for Poland's accession to the European Union and was more pronounced in industries with larger shares of unskilled labor. Their analysis indicates that a decrease in an industry tariff was associated with higher wages being earned by workers employed in the industry, controlling for worker characteristics and geographic variables. The result is robust to including year and industry fixed effects, controlling for industry-level exports, imports, concentration, stock of foreign direct investment, and capital accumulation. The finding is consistent with liberalization increasing competitive pressures, forcing firms to restructure and improve their productivity, which in turn translates into higher profits being shared with workers. It could also be potentially attributed to trade liberalization lowering the costs of imported inputs, which enhances firm profitability. The result holds when skilled workers are excluded from the sample, thus suggesting that reductions in trade barriers benefited the unskilled in terms of an increase in wages.
format	Publications & Research :: Policy Research Working Paper
author	Chor-ching Goh Javorcik, Beata S.
author_facet	Chor-ching Goh Javorcik, Beata S.
author_sort	Chor-ching Goh
title	Trade Protection and Industry Wage Structure in Poland
title_short	Trade Protection and Industry Wage Structure in Poland
title_full	Trade Protection and Industry Wage Structure in Poland
title_fullStr	Trade Protection and Industry Wage Structure in Poland
title_full_unstemmed	Trade Protection and Industry Wage Structure in Poland
title_sort	trade protection and industry wage structure in poland
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/03/5711342/trade-protection-industry-wage-structure-poland http://hdl.handle.net/10986/8967
_version_	1764407160941314048

Trade Protection and Industry Wage Structure in Poland

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