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Employment Polarisation and Inequality in the UK and Hungary

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  • Redmond, Gerry
  • Kattuman, Paul

Abstract

This paper uses household budget survey microdata to explore the growth in household income inequality in Hungary in the period 1987-95, and compares it with inequality in the UK in 1995-96. Decomposition of inequality according to both household characteristics and income sources shows that, while inequality did grow rapidly in Hungary over the early Transition period, several factors prevented its growth to higher levels. One of these factors, the distribution of employment and earnings between households, is explored in some detail. While there was considerable polarisation between households with and without employed members in the UK in 1995-96, this was less of a feature in Hungary, in spite of a massive withdrawal of men and women from the labour market between 1987 and 1995. Rather, a narrowing of the gender pay gap and a continued high level of female participation in employment appears to have ensured that, even as earnings inequality in Hungary increased to the extent that it surpassed earnings inequality in the UK, the distribution of household earnings, and the distribution of household incomes, remained more equal in Hungary. Copyright 2001 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 25 (2001)
Issue (Month): 4 (July)
Pages: 467-80

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Handle: RePEc:oup:cambje:v:25:y:2001:i:4:p:467-80

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Cited by:
  1. Claire Ravel, 2007. "The Polarisation of Employment Within Households from 1975 to 2002," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 402, pages 3-23, November.
  2. Zsuzsa Kapitany & Gyorgy Molnar, 2002. "Inequality and mobility analysis by the Hungarian Rotation Panel, 1993-98," IEHAS Discussion Papers 0204, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  3. Molnár, György & Kapitány, Zsuzsa, 2002. "Egyenlőtlenség és mobilitás a magyar háztartások jövedelmében, kiadásaiban és tartós fogyasztási cikkeinek állományában
    [Inequality and mobility in the income, expenditures and consu
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1015-1041.
  4. Stephen Hynes & Cathal O’Donoghue, 2005. "Trends in Farm Income Mobility and Inequality in Ireland," Working Papers 0505, Rural Economy and Development Programme,Teagasc.
  5. Galasi, Péter & Nagy, Gyula, 2008. "Jövedelmek és munkanélküli-ellátások
    [Targeting unemployment benefits in Hungary]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 473-502.
  6. De Hoyos, Rafael E., 2007. "Accounting for Mexican income inequality during the 1990s," Policy Research Working Paper Series 4224, The World Bank.
  7. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni dell'Istituto di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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