EU structural interventions and individual wages in Poland: Empirical evidence for 2004–2006 financial framework

Abstract

In this paper we study empirically the relationship between EU structural interventions and individual wages in Poland by employing the augmented NEG wage equation. Our analysis is based on the Labour Force Survey data compiled by the Polish Central Statistical Office for the period 2004–2009 that corresponds to the first EU financial 2004–2006 framework for Poland that was implemented until 2009. Using annual data on about 10,000 Polish workers in 16 regions, we find that a significant fraction of inter‐individual differences in terms of return to labour can be explained by the EU funds variable. In addition, we also confirm that geography of market access as well as individual characteristics account are important in explaining spatial wage disparities in Poland.