Earnings disparities in the Czech Republic: the history of equalisation

Abstract

Data from previous statistical & post-1989 sociological surveys are used to show the long-term development in earnings disparities in the Czech Republic. Results show that equalization in wages occurred in three phases: (1) during Nazi occupation; (2) 1945-1948; & (3) the postcommunist period. During the communist period, the rewarding system was characterized by the predominance of demographic factors, the decline of secondary & tertiary education, & the priority given to productive branches. Since 1989, the market principle has begun to replace the general needs principle. Other observed shifts include increasing return to tertiary education, an attenuation of the gender gap, & a flattening of the age profile of earnings. However, market adjustment is uneven between sectors of ownership & branches of industry & there is a backlash in the professional public services.