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Income Distribution and Convergence in the Transition Process – A Cross-Country Comparison

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  • Jens H�lscher

    ()
    (Brighton Business School, University of Brighton, Mithras House, Lewes Road, Brighton BN2 4AT, UK.)

Abstract

The aim of this study is to clarify, whether and where the widespread opinion that systemic change from socialism to capitalism went along with dramatically rising inequality is true and how income distribution does affect the overall growth performance of transition countries. The countries under review are: the Czech Republic, Hungary, Poland and Russia. The findings are analysed against the background of convergence or divergence respectively vis-à-vis the European Union (EU) level of income and income distribution. Here Germany, being the neighbouring country and biggest EU economy, is taken as benchmark. For the Czech Republic, Hungary and Poland it can be shown that income distribution remained relatively stable before and throughout the transition period on the basis of so far unpublished data from the Luxemburg Income Study database. Russia however displays a sharp increase in income distribution. These results are illustrated by Lorenz curves and underpinned by developments in functional income distribution and social transfers. An attempt is made to locate these transition countries on a stylised Kuznets curve and further qualitative factors referring to growth and equality are considered. Comparative Economic Studies (2006) 48, 302–325. doi:10.1057/palgrave.ces.8100119

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 48 (2006)
Issue (Month): 2 (June)
Pages: 302-325

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Handle: RePEc:pal:compes:v:48:y:2006:i:2:p:302-325

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Cited by:
  1. David Aristei & Cristiano Perugini, 2011. "Speed and Sequencing of Transition Reforms and Income Inequality: a Panel Data Analysis," Working Papers 302, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  2. Milanovic, Branko & Ersado, Lire, 2010. "Reform and Inequality during the Transition: An Analysis Using Panel Houshold Survey Data, 1990-2006," Working Paper Series wp2010-62, World Institute for Development Economic Research (UNU-WIDER).
  3. Alexei Izyumov & Trista Claxon, 2009. "Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective," Journal of Economic Issues, M.E. Sharpe, Inc., vol. 43(3), pages 733-758, September.

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