Wage trends in Hungary

Economic reform began over 20 years ago in Hungary but a critical stage has now been reached in the transition process, where certain political and economic decisions must be made. Attracting foreign investments and improving living standards must be balanced against the danger of further economic recession and higher levels of poverty. Wage policy is one sphere in which decisions will have major implications for the future. The authors examine current economic conditions in Hungary and the structure of wages, wage trends and policy, in the context of transition to a market economy.