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Inequality in Belarus from 1995 to 2005

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  • Maksim Yemelyanau
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    Abstract

    Income and consumption inequality increased in all transition economies, albeit to very different levels. Existing findings suggest that countries that were slow to undertake promarket reforms experienced the largest increase in inequality, with the notable exception of Belarus, one of the least reformed ex-Soviet republics, that nevertheless has inequality comparable to the most advanced and least unequal transition countries of Central Europe. This article studies the evolution of inequality in Belarus in 1995-2005, decomposes inequality by region and source of income, and provides cross-country comparisons. Specifically, a comparison of Belarus and Ukraine, based on DiNardo-Fortin-Lemieux Counterfactual Kernel Densities, suggests that the large difference in inequality levels is due to different income policies of the two countries: Belarus is unusual not only in its lack of privatization, but also in that it kept many of the old-style Soviet social security features.

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    Bibliographic Info

    Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp356.

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    Date of creation: Jun 2008
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    Handle: RePEc:cer:papers:wp356

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    Keywords: Belarus; Ukraine; transition; income inequality; expenditure inequality; social security.;

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    1. World Bank, 2002. "Transition, The First Ten Years : Analysis and Lessons for Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 14042, October.
    2. Ganguli, Ina & Terrell, Katherine, 2005. "Institutions, Markets and Men's and Women's Wage Inequality: Evidence from Ukraine," IZA Discussion Papers 1724, Institute for the Study of Labor (IZA).
    3. Yemtsov, Ruslan, 2001. "Inequality and Income Distribution in Georgia," IZA Discussion Papers 252, Institute for the Study of Labor (IZA).
    4. Thesia I. Garner & Katherine Terrell, 1998. "A Gini decomposition analysis of inequality in the Czech and Slovak Republics during the transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(1), pages 23-46, 05.
    5. Kazutoshi Miyazawa, 2005. "Growth and inequality: a demographic explanation," LSE Research Online Documents on Economics 6546, London School of Economics and Political Science, LSE Library.
    6. Philippe Van Kerm, 2003. "Adaptive kernel density estimation," Stata Journal, StataCorp LP, vol. 3(2), pages 148-156, June.
    7. Brück, Tilman & Danzer, Alexander M. & Muravyev, Alexander & Weißhaar, Natalia, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," Proceedings of the German Development Economics Conference, Göttingen 2007 33, Verein für Socialpolitik, Research Committee Development Economics.
    8. Asad Alam & Mamta Murthi & Ruslan Yemtsov & Edmundo Murrugarra & Nora Dudwick & Ellen Hamilton & Erwin Tiongson, 2005. "Growth, Poverty and Inequality : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 7287, October.
    9. Aivazian Sergey & Kolenikov Stanislav, 2001. "Poverty and Expenditure Differentiation of the Russian Population," EERC Working Paper Series 01-01e, EERC Research Network, Russia and CIS.
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    Cited by:
    1. Maksim Yemelyanau, 2009. "Second agriculture in Belarus and Ukraine:subsistence or leisure?," BEROC Working Paper Series 08, Belarusian Economic Research and Outreach Center (BEROC).

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