"Croatian Wage Inequality and Wage Differentials, 1970-2008: Measurement and Determinants"

We use newly-available data on income by educational and vocational attainment and grouped income-interval data to examine wage inequality and wage differentials in Croatia between 1970 and 2008. This is a time period during which Croatia experienced enormous institutional and structural change, including the fall of socialism, hyperinflation, the Homeland war and the creation of sovereign Croatia. We construct both Gini and Theil measures of inequality, using grouped data. We find a general compression of earnings differences by educational and vocational attainment, but with a slight increase in the capitalist period post-1990. The income interval data shows a clearer pattern of a secular increase in inequality that is sharper in the capitalist period. We also examine within-industry inequality to see whether industries that experienced stronger structural changes also experienced a greater increase in inequality. Our evidence on this is mixed.Croatia, Transition Economy Labor Markets, Inequality, Gini coefficient, Theil Index

DETERMINANTS OF ECONOMIC GROWTH IN THE COUNTRIES OF CENTRAL AND EASTERN EUROPE

Održivost globalnih integracijskih trendova uvjetovana je konvergencijom dohodaka po stanovniku zemalja članica integracije. Zato je cilj ovoga rada bio analizirati problematiku ekonomskoga rasta i definirati odrednice rasta u odabranim zemljama srednje i istočne Europe. Nakon prikaza ključnih teorija ekonomskoga rasta slijedi kratak pregled transformacijskog procesa, gdje se specificiraju njegove osnovne ekonomske karakteristike. Poseban je naglasak stavljen na Hrvatsku, Rumunjsku i Bugarsku, ekonomske performanse kojih su se relativizirale u odnosu na odabrane zemlje okruženja, članice Europske unije. Rezultati pokazuju kako su ekonomske performanse bile relativno ujednačene u svim zemljama uzorka, dok su se analizirane odrednice rasta ponašale u skladu sa zaključcima relevantnih teorija rasta. Bitno za istaknuti je i identificirani izostanak tehnološkoga napretka kao generatora dugoročnoga ekonomskoga rasta. Analiza nije samo ukazala na postojeća ekonomska kretanja, već je bila usmjerena i na pokušaj odgonetavanja načina na koji će aktualni integracijski i budući ekonomski tokovi utjecati na odrednice rasta.Sustainability of global integration-oriented trends is conditional upon the output per capita convergence among the integrated member countries. The aim of this paper is, thus, to analyze in greater detail the issues regarding economic growth and to defi ne growth factors in chosen countries of Central and Eastern Europe. After the theoretical and empirical survey of relevant growth literature, the paper continues with an overview of the transformation process and a specifi cation of its basic characteristics. Special ref-erence was made to Bulgaria, Croatia and Romania, whose economic performance was analyzed relative to that of the chosen surrounding countries, members of the European Union. Results show that the economic performance was relatively uniformed amongst the sample countries, while the analyzed growth factors’ behavior was in accordance with conclusions of the relevant growth theories. Important to emphasize is the identifi cation of virtually non-existent technological progress, the generator of long-term economic growth. Analysis did not only defi ne the current economic trends, but was also directed towards the identifi cation of the way in which present and future economic and integration processes would infl uence growth factors

"Wage Differentials and Wage Inequality in Croatia, 1970-2008: Assessing the Labor Market Impact of Economic Transformation"

In this paper, we examine wage inequality and wage differentials in Croatia from 1970 to 2008. We focus especially on changing income inequality related to educational and vocational attainment, changing income inequality within those groups, and how these two components of inequality were affected by the economic transformation from Socialism to capitalism. We find that income inequality between groups was relatively stable, while overall inequality trended upward in the post-transformation period. This finding is consistent with a growing importance of individual rather than group productivity in labor market compensation, a change broadly consistent with the economic transformation of the Croatian labor market.Croatia, Economics of Transition, Inequality, Gini coefficient

Analiza faktora rasta zemalja srednje i istočne Europe

Vezano uz globalne integracijske trendove kojima je konvergencija dohodaka per capita nužan preduvjet za održivost, cilj je ovoga rada izvršiti analizu odrednica ekonomskog rasta u odabranim zemljama srednje i istočne Europe. Nakon empirijskog prikaza relevantnih istraživanja rasta, u radu se nastavlja s ekonometrijskom analizom faktora rasta primjenom tehnike fiksnog panela. Rezultati takve analize, unutar uzorka od 8 odabranih zemalja srednje i istočne Europe u razdoblju od 1990-2003. godine, pokazuju da se rast u većoj mjeri zasnivao na čimbenicima koji ostaju izvan specifikacije modela rasta dosadašnjih relevantnih studija koje svoje oslonce nalaze u neoklasičnoj i novim teorijama rasta. Odnosno, proces transformacije u tržišno gospodarstvo u zemljama je uzorka kreirao specifično makroekonomsko okruženje unutar kojeg su i faktori rasta nespecifični za tržišna gospodarstva imali zapaženu ulogu u objašnjavanju varijance u stopama ekonomskog rasta