The Evolution of the Foreign-Ownership Wage Premium in Poland

The study examines the foreign-domestic wage differential in Poland during 2014-2017. The individual-level data come from ongoing surveys conducted by a major Polish HR consulting firm. The empirical analysis shows that during this period, there was a substantial (albeit decreasing) raw wage advanta...

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Bibliographic Details
Published inTransition studies review Vol. 29; no. 2; p. 37
Main Authors Adamchik, Vera A, Sedlak, Piotr
Format Journal Article
LanguageEnglish
Published Milan Transition Academia Press 01.12.2022
Subjects
Consulting firms
Earnings
Employees
Employment
Foreign owned US companies
Income inequality
Individual differences
Labor market
Ownership
Portfolio investments
R&D
Research & development
Skilled workers
Wage differential
Wages & salaries
Willingness to pay
Working conditions
Workplaces
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Summary:The study examines the foreign-domestic wage differential in Poland during 2014-2017. The individual-level data come from ongoing surveys conducted by a major Polish HR consulting firm. The empirical analysis shows that during this period, there was a substantial (albeit decreasing) raw wage advantage for workers whom foreign-owned firms employed. This differential reduced significantly after controlling for personal, work, and workplace characteristics. Foreign firm employees at the lower end of the earnings distribution faced a smaller wage gap than those at the upper end; the wage gap showed a noticeable decline at all the percentiles over the years. Wage gap decompositions reveal that a predominant portion of the wage differential was due to differences in observed characteristics; nevertheless, a substantial portion of the wage gap remained unexplained.
ISSN:1614-4015
1614-4015
DOI:10.14665/1614-4007-29-2-003