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Did Inequality Increase in Transition?: An Analysis of the Transition Countries of Eastern Europe and Central Asia

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  • David R. Henderson
  • Robert M. McNab
  • Tamas Rozsas

Abstract

In the first decade that the former socialist countries of Eastern Europe and Central Asia transitioned toward freer markets, measured income inequality increased. Because this contradicted previous models of inequality, researchers linked the increase in inequality to a supposed equality under socialism and to the process of economic and political liberalization. We show, however, that other factors, including hidden inequalities in the socialist era, can explain democratization's resultant increase in measured income inequality.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Eastern European Economics.

Volume (Year): 46 (2008)
Issue (Month): 2 (March)
Pages: 28-49

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Handle: RePEc:mes:eaeuec:v:46:y:2008:i:2:p:28-49

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106044

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Cited by:
  1. Ucal, Meltem & Karabulut, Gokhan & Bilgin, Mehmet Huseyin, 2009. "Military Expenditures and Inequality: Empirical Evidence from Israel," MPRA Paper 48643, University Library of Munich, Germany.
  2. Muhammad, Shahbaz & Reza, Sherafatian-Jahromi & Muhammad, Nasir Malik, 2012. "Linkages between Defence Spending and Income Inequality in Iran," MPRA Paper 41983, University Library of Munich, Germany, revised 14 Oct 2012.
  3. David Henderson & Robert M McNab & Tamas Rozsas, 2004. "The Hidden Inequality In Socialism," Development and Comp Systems 0411012, EconWPA.

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