WINNERS AND LOSERS IN TRANSITION - RETURNS TO EDUCATION, EXPERIENCE, AND GENDER IN SLOVENIA

This article, using an unusually rich data set on Slovenian workers over the 1987-91 period, explores changes in the structure of wages and employment produced by transition to a market economy. Employment and real wages fell dramatically over the period, but the losses were borne disproportionately by the least skilled. Across all sectors of the economy, relative wages and employment rose for the most-educated workers. Women gained in comparison with men, primarily because women occupied sectors less adversely affected by the transition. Pension policies, which encouraged retirement, are shown to have drastically reduced employment of experienced workers and helped contribute to rising returns to skill. Increases in returns to education and experience contributed to rising wage inequality, but the variance of wages increased for workers with identical skills as well.