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Wage Polarization in the Context of the Czech Republic Cover

Wage Polarization in the Context of the Czech Republic

By: Radek Náplava  
Open Access
|Jun 2022

Abstract

Existing studies have provided evidence of job polarization in many developed countries. The issue of wage polarization is less obvious: many articles do not address it at all, and some even confuse it with job polarization. At the same time, the significance of the phenomenon of polarization results precisely from the consequence of wage polarization: the increase in wage inequality. The aim of this article is to find out whether wage polarization occurred in the Czech Republic during the period 2004–2018. Wage development in the private sphere does not imply wage polarization, but in the public sphere, results imply a very slight wage polarization mainly due to the development between 2004 and 2010. This phenomenon has occurred in both male and female occupations. Panel regression analysis shows that globalization reduces upper-tail inequality (the ratio Q90/Q50) while increasing lower-tail inequality (the ratio Q50/Q10). At the level of the whole economy, technology seems to contribute to reducing both upper-tail and lower-tail inequality. These results probably correspond to the nature of the Czech economy, which is based on middle-skilled workers with a pro-export focus.

DOI: https://doi.org/10.2478/revecp-2022-0005 | Journal eISSN: 1804-1663 | Journal ISSN: 1213-2446
Language: English
Page range: 97 - 115
Submitted on: Apr 21, 2021
Accepted on: Mar 4, 2022
Published on: Jun 23, 2022
Published by: Mendel University in Brno
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2022 Radek Náplava, published by Mendel University in Brno
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.