No longer working for the state: Residual state sector versus private sector

The paper is concerned with decreasing state ownership in post-communist Eastern Europe and a concomitant decline in the proportion employed in the state sector. Many individuals have shifted into private sector employment, self-employment or unemployment. The literature on sectoral shifts in employment in Eastern Europe is summarised, and from this it is argued that there will be a growing differentiation between private sector employees and state sector employees in economic, social and political terms. Data is then analysed based on a survey in 1995 of around 1000 households in each of four cities - Budapest, Prague, Warsaw and Krakow. Similar patterns emerged in the four cities, consistent differences in working conditions and rewards are already evident between the self-employed, private sector and state sector. These conflicting economic interests are reflected in contrasting attitudes to the economy and polity amongst those employed in different sectors.