Temporary Jobs, Institutions, and Wage Inequality within Education Groups in Central-Eastern Europe

Labor market deregulation and weaker minimum wage provisions reduce the wage gap; this could be related to the fact the these institutional features reduce the duality on the labor market, triggering a downward convergence of permanent wages toward the lowest level of the temporary employed, especially in the context of labor reallocation and declining wages typical of recession. Stronger wage setting institutions, on the contrary, seem to reinforce duality in the labor market, although to different extents depending on the group of workers and on the part of the wage distribution concerned.