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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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Bibliographic Info

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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References

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  1. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  2. W. G. Gale & J. K. Scholz, . "Intergenerational transfers and the accumulation of wealth," Institute for Research on Poverty Discussion Papers 1019-93, University of Wisconsin Institute for Research on Poverty.
  3. Jacob A. Frenkel & Guillermo Calvo, 1991. "From Centrally Planned to Market Economies: The Road from CPE to PCPE," IMF Working Papers 91/17, International Monetary Fund.
  4. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center 84-10, Chicago - Population Research Center.
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Cited by:
  1. Stefan Hochguertal & Henry Ohlsson, 2000. "Inter Vivos Gifts: Compensatory or Equal Sharing?," Econometric Society World Congress 2000 Contributed Papers 0699, Econometric Society.
  2. Zuleika Ferré, 2004. "Capital Social y redes: Una Aproximación al Apoyo Inter-hogares," Documentos de Trabajo (working papers) 1604, Department of Economics - dECON.
  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. 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.
  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. 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.
  7. Albarran, Pedro & Attanasio, Orazio P., 2002. "Do Public Transfers Crowd Out Private Transfers? Evidence from a Randomized Experiment in Mexico," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Mitrut, Andreea & Wolff, François-Charles, 2009. "A causal test of the demonstration effect theory," Economics Letters, Elsevier, vol. 103(1), pages 52-54, April.
  9. 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.
  10. 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.
  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. 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.
  13. 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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