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Family Safety Nets and Economic Transition: A Study of Worker Households in Poland

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  • Cox, Donald
  • Jimenez, Emmanuel
  • Okrasa, Wlodek

Abstract

Can Eastern European families most severely impoverished during the transition to capitalism rely on private family safety nets? This question is likely critical for the transition's success, but little is known about family networks in Eastern Europe. The authors analyze newly available Polish household surveys, conducted both before and after Poland's economic transition, which measure private inter-household transfers. Such transfers are large and widespread in Poland, and in many ways appear to function like means-tested public transfers. They flow from high to low-income households and are targeted to young couples, families with many children and those experiencing illness. Private transfer patterns also suggest that they are responsive to liquidity constraints. The authors' results from 1987 data indicate that private transfers could fill a non-trivial portion of the income gap left by unemployment. However, they also find evidence from 1992 data suggesting that family networks weakened somewhat after the transition. Copyright 1997 by The International Association for Research in Income and Wealth.

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Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

Volume (Year): 43 (1997)
Issue (Month): 2 (June)
Pages: 191-209

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Handle: RePEc:bla:revinw:v:43:y:1997:i:2:p:191-209

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  1. William G. Gale & John Karl Scholz, 1991. "Intergenerational Transfers and the Accumulation of Wealth," UCLA Economics Working Papers 624, UCLA Department of Economics.
  2. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  3. Jacob A. Frenkel & Guillermo Calvo, 1991. "From Centrally-Planned to Market Economies," IMF Working Papers 91/17, International Monetary Fund.
  4. Guillermo A. Calvo & Jacob A. Frenkel, 1991. "From Centrally-Planned to Market Economies: The Road from CPE to PCPE," NBER Working Papers 3698, National Bureau of Economic Research, Inc.
  5. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
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Cited by:
  1. Attanasio, Orazio & Rios-Rull, Jose-Victor, 2000. "Consumption smoothing in island economies: Can public insurance reduce welfare?," European Economic Review, Elsevier, vol. 44(7), pages 1225-1258, June.
  2. Mitrut, Andreea & Wolff, François-Charles, 2009. "A causal test of the demonstration effect theory," Economics Letters, Elsevier, vol. 103(1), pages 52-54, April.
  3. Dimova, Ralitza & Wolff, François-Charles, 2008. "Are private transfers poverty and inequality reducing? Household level evidence from Bulgaria," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 584-598, December.
  4. Stefan Hochguertel & Henry Ohlsson, 2001. "Compensatory Inter Vivos Gifts," Macroeconomics 0012006, EconWPA.
  5. McKernan, Signe-Mary & Pitt, Mark M. & Moskowitz, David, 2005. "Use of the formal and informal financial sectors : does gender matter? empirical evidence from rural Bangladesh," Policy Research Working Paper Series 3491, The World Bank.
  6. Mitrut, Andreea & Nordblom, Katarina, 2010. "Social norms and gift behavior: Theory and evidence from Romania," European Economic Review, Elsevier, vol. 54(8), pages 998-1015, November.
  7. Maria Amelina & Dan Chiribuca & Stephen Knack, 2004. "Mapped In or Mapped Out? The Romanian Poor in Inter-household and Community Networks," World Bank Publications, The World Bank, number 14934, August.
  8. Anna Baranowska-Rataj, 2012. "What would your parents say? The impact of cohabitation on intergenerational relations in traditional societies," Working Papers 50, Institute of Statistics and Demography, Warsaw School of Economics.
  9. Zuleika Ferré, 2004. "Capital Social y redes: Una Aproximación al Apoyo Inter-hogares," Documentos de Trabajo (working papers) 1604, Department of Economics - dECON.
  10. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
  11. Tomini, Florian & Hagen-Zanker, Jessica, 2010. "How has internal migration in Albania affected the receipt of transfers from family and friends?," MPRA Paper 29478, University Library of Munich, Germany.
  12. Lei, Xiaoyan & Giles, John & Hu, Yuqing & Park, Albert & Strauss, John & Zhao, Yaohui, 2012. "Patterns and correlates of intergenerational non-time transfers : evidence from CHARLS," Policy Research Working Paper Series 6076, The World Bank.
  13. Mitrut, Andreea & Nordblom, Katarina, 2007. "Motives for Private Gift Transfers: Theory and Evidence from Romania," Working Papers in Economics 262, University of Gothenburg, Department of Economics, revised 30 Apr 2008.
  14. Daniel M. Hungerman, 2014. "Public Goods, Hidden Income, and Tax Evasion: Some Nonstandard Results from the Warm-Glow Model," NBER Working Papers 19804, National Bureau of Economic Research, Inc.
  15. Albarran, Pedro & Attanasio, Orazio P., 2002. "Do Public Transfers Crowd Out Private Transfers? Evidence from a Randomized Experiment in Mexico," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  16. Lam, Lai Ming & Paul, Saumik, 2013. "Displacement and Erosion of Informal Risk-Sharing: Evidence from Nepal," World Development, Elsevier, vol. 43(C), pages 42-55.
  17. Sergei Guriev & Barry W. Ickes, 2000. "Microeconomic Aspects of Economic Growth in Eastern Europe and the Former Soviet Union, 1950-2000," William Davidson Institute Working Papers Series 348, William Davidson Institute at the University of Michigan.
  18. World Bank, 2003. "Romania : Poverty Assessment, Volume 2. Background Papers," World Bank Other Operational Studies 14700, The World Bank.
  19. Christoph Bühler & Ewa Fratczak, 2005. "Learning from others and receiving support: the impact of personal networks on fertility intentions in Poland," MPIDR Working Papers WP-2005-017, Max Planck Institute for Demographic Research, Rostock, Germany.

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