How the Grade of Education Influences Wages in Different Phases of Economic Cycle: Case of the Czech Economy
Petr Doucek, Lea Nedomova
Available Online August 2016.
- https://doi.org/10.2991/iceemt-16.2016.10How to use a DOI?
- Education level, nominal wage, economic cycle, inflation rate, open economy
- This article analyses the evolution of wages in the Czech Republic by education level. The Czech Republic is an example of a small open economy heavily dependent on the neighbouring countries. The collected data, representing a continual time series from 2000 to 2014, contain annual records of approximately 1,900,000 wages in the Czech Republic structure by different criteria, including education level. For the purposes of the article we chose the following five education levels: Primary, High School, Bachelor, Master, and PhD. The data on average nominal wages converted to the euro are further broken down according to the economic cycle into a period of economic boom in 2000-2008, economic crisis 2008-2011, and a period of economic recovery in 2011-2014. To analyse the data we used tools for analysing time series and approximated the trends with a linear function. Quality of the estimate is measured with the method of least squares. The results show that an education level affects significantly the wage amount. For the period of economic boom we succeeded in identifying the upwards wage trends in all the categories concerned. The growth dynamic was highest in highest education and declined together with declining education level. The crisis period points to contradictory conclusions caused by the fall in the rate of the local currency. In the period of recovery the fall in the local currency rate caused a decrease in the nominal wage in all the categories under review.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Petr Doucek AU - Lea Nedomova PY - 2016/08 DA - 2016/08 TI - How the Grade of Education Influences Wages in Different Phases of Economic Cycle: Case of the Czech Economy PB - Atlantis Press SP - 49 EP - 55 SN - 2352-5398 UR - https://doi.org/10.2991/iceemt-16.2016.10 DO - https://doi.org/10.2991/iceemt-16.2016.10 ID - Doucek2016/08 ER -