Publications of Sapatoru, D.

The wage effects of schooling under socialism and in transition: evidence from Romania, 1950-2000

We estimate the impact of schooling on monthly earnings from 1950 to 2000 in Romania. Nearly constant at about 3 to 4% during the socialist period, the coefficient on years of schooling in a conventional earnings regression rises steadily during the 1990s, reaching 8.5% by 2000. Our analysis finds little evidence for the standard explanations of the increased return to schooling in the West, such as labor supply movements, product demand shifts, and technical change. Nor is the increase fully explained by the transition-specific accounts sometimes offered, including wage liberalization, border opening, and increased quality of education. However, we find some support for institutional and organizational explanations, particularly the high productivity of education in restructuring and entrepreneurial activities in a disequilibrium environment.

The wage effects of schooling under socialism and in transition: evidence from Romania, 1950-2000

We estimate the impact of schooling on monthly earnings from 1950 to 2000 in Romania. Nearly constant at about 3-4 percent during the socialist period, the coefficient on schooling in a conventional earnings regression rises steadily during the 1990s, reaching 8.5 percent by 2000. Our analysis finds little evidence for either the standard explanations of such an increase in the West (labor supply movements, product demand shifts, technical change) or the transition-specific accounts sometimes offered (wage liberalization, border opening, increased quality of education). But we find some support for institutional and organizational explanations, particularly the high productivity of education in restructuring and entrepreneurial activities in a disequilibrium environment.

Earle JS, Sapatoru D. Privatization in a hypercentralized economy: the case of Romania. In: Earle JS, Frydman R, Rapaczynski A, editors. Privatization in the transition to a market economy: Studies of preconditions and policies in Eastern Europe. New York: St. Martin's Press in association with the Central European University; 1993. p. 147-70.