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Recent trends in income inequalities in Hungary using administrative data

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  • Svraka, András

    (Tax Policy and Research Unit, Ministry of Finance)

Abstract

This paper uses 2009--19 income tax data to investigate trends in Hungarian market income inequalities. Wage inequality decreased, total inequality increased but these changes differ across the income distribution. Income share of the bottom 40% decreased slightly due an inflow of marginally attached workers. Wages above this threshold -- corresponding to full time employment -- significantly flattened, including in the top 1%, while total income's share remained mostly unchanged. Similar patterns hold within groups for gender, age, and regions but between group inequality rose for age and decreased for regions due to changes in taxpayer population. Growth was broadly shared for non marginally attached, although in the top 0.1% all growth came from capital income. Persistence of income during this period was low in the bottom half of the income distribution, suggesting an increased inequality in this segment might not lead to higher inequality in the long run.

Suggested Citation

  • Svraka, András, 2021. "Recent trends in income inequalities in Hungary using administrative data," Taxation Working Papers 8, Ministry of Finance, Department of Tax Policy and International Taxation.
    • Handle: RePEc:auo:moftwp:8
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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