Dynamics of labor market segmentation in Poland, 1982-1987

Research in the early 1980s showed that industrial segmentation strongly affected income inequality in Poland. The findings were interpreted as indicative of the socialist state policy whereby wages are distributed through centrally imposed industrial organizations. Since 1982, however, attempts have been made to introduce long-range reform into the Polish economy. In this article data from 1982 and 1987 national surveys are compared to establish whether any changes in income determination occurred. Using regression analysis, no substantial changes in income determination patterns were detected, suggesting that economic reform did not weaken the traditional mechanisms of labor market segmentation in Poland.