A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics during the Transition
AbstractDisposable income inequality, as measured by the Gini coefficient and using Family Budget Survey data, increased very little, and by a similar amount, from 1989–93 in the Czech Republic and Slovakia. This surprising result is examined with an analysis of changes in the channels of redistribution and a Gini decomposition. We find that the sizeable increase in overall inequality due to changes in the wage earnings component is mitigated by changes in the tax and transfer components in both republics. As for the relative effects of government policies, changes in the transfer component contributed more than changes in the tax component to lowering the growth of inequality in the Czech Republic, while the reverse was true for Slovakia.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1897.
Date of creation: Jun 1998
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Other versions of this item:
- 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.
- D10 - Microeconomics - - Household Behavior - - - General
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
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