Economic Transformation and Income Distribution: Some Evidence from the Baltic Countries
AbstractThe transition from a centrally planned to a market economy implies a massive reallocation of resources. The realignment of relative prices that is needed to achieve this may bring about important distributional effects. This paper examines the extent to which income differentials have changed in countries where bold reforms have been introduced. Discussing the experience in the Baltic states, it finds that recorded income differentials in these countries appear to have widened markedly largely as a result of an increase in the dispersion of earnings. The redistributive effects of social assistance and tax policies seem to have been only marginal.
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 43 (1996)
Issue (Month): 3 (September)
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Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
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- Handa, Sudhanshu & King, Damien, 1997. "Structural adjustment policies, income distribution and poverty: A review of the jamaican experience," World Development, Elsevier, Elsevier, vol. 25(6), pages 915-930, June.
- Hayo, Bernd, 2004. "Public support for creating a market economy in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 720-744, December.
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