IIASA RepositoryEnterprise Social Benefit and the Economic Transition in HungaryM.ReinauthorB.L.FriedmanauthorIn Hungary as in other East Bloc countries, enterprises have given a variety of nonwage benefits to their workers, sometimes called the "social wage." We explore what has happened to non-wage compensation during the economic transition which began in 1989. During this period, the real wage has fallen, and many aspects of enterprise operations have undergone change. This paper considers three broad questions. (1) How has total compensation and its composition changed during this period of restructuring? Have changes in non-wage compensation offset or reinforced changes in wages and which elements have been increasing, which decreasing? (2) What factors can account for the change? (3) Have enterprise non-wage benefits in fact served social functions in addition to their business functions, and, if so, has the social role of benefits changed during this period?1995-02WP-95-010Monograph

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