Template-Type: ReDIF-Article 1.0

Author-Name: Álmos Telegdy
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: telegdya@mnb.hu
Author-Person: pte66

Title: Wage Inequality on the Hungarian Labour Market: Technological Change, Expansion in Higher Education and the Role of the Minimum Wage

Abstract: The paper examines the development of wage inequality in Hungary between
1995 and 2016, based on the theories that explain the labour market impact of
information and communication technologies (ICT). The analysis is based on the
Hungarian Wage Survey Database and uses the empirical methods in the literature
to calculate the change of the employment shares and wages of various jobs. As
in most countries, the Hungarian labour market became polarized, but this has
not been accompanied with wage polarization. Rather, the increase of wages was
inversely proportional with skill. The paper proposes two reasons for this behaviour:
one is the large increase in the minimum wage, while the other the educational
expansion which increased the labour supply of highly skilled workers.

Classification-JEL: J31, J61, D31, R11
Keywords: wage inequality, wage dynamics, labour market polarisation
Pages: 5-28
Volume: 17
Issue: 3
Year: 2018
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-17-3-st1-telegdy.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:17:y:2018:i:3:p:5-28