@TechReport{iza:izadps:dp2456, author={Myck, Michal and Morawski, Leszek and Mycielski, Jerzy}, title={Employment Fluctuations and Dynamics of the Aggregate Average Wage in Poland 1996-2003}, year={2006}, month={Nov}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={2456}, url={https://www.iza.org/publications/dp2456}, abstract={The aggregate average wage is often used as an indicator of economic performance and welfare, and as such often serves as a benchmark for changes in the generosity of public transfers and for wage negotiations. Yet if economies experience a high degree of (nonrandom) fluctuation in employment the composition of the employed population will have a considerable effect on the computed average. In this paper we demonstrate the extent of this problem using data for Poland for the period 1996-2003. During these years employment in Poland fell from 51.2% to 44.2% and most of it occurred between the end of 1998 and the end of 2002. We show that about a quarter of the growth in the average wage during this period could be attributed purely to changes in employment.}, keywords={transition economies;wage distribution;aggregation;employment dynamics}, }