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A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics during the Transition

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Author Info
Garner, Thesia I
Terrell, Katherine

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Abstract

Disposable 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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1897.

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Date of creation: Jun 1998
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Handle: RePEc:cpr:ceprdp:1897

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Related research
Keywords: Household Income Inequality Taxes transfers Transition

Find related papers by JEL classification:
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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  1. Thesia Garner & Katherine Terrell, 2001. "Some Explanations for Changes in the Distribution of Household Income in Slovakia: 1988 and 1996," William Davidson Institute Working Papers Series 377, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. Irina Dolinskaya, 2002. "Transition and Regional Inequality in Russia: Reorganization or Procrastination?," IMF Working Papers 02/169, International Monetary Fund. [Downloadable!]
  3. Jan Svejnar, 2007. "China in Light of the Performance of Central and East European Economies," IZA Discussion Papers 2791, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition : Household Survey Evidence from Ukraine," ESCIRRU Working Papers 2, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  5. Jan Svejnar, 2002. "Labor Market Flexibility in Central and East Europe," William Davidson Institute Working Papers Series 496, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  6. Irena Grosfeld & Claudia Senik, 2008. "The Emerging Aversion to Inequality: Evidence from Poland 1992-2005," William Davidson Institute Working Papers Series wp919, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  7. Jan Svejnar, 2006. "Strategies for growth : Central and Eastern Europe," Proceedings, Federal Reserve Bank of Kansas City, pages 205-233. [Downloadable!]
  8. Keane, Michael P. & Prasad, Eswar S., 2002. "Inequality, Transfers and Growth: New Evidence from the Economic Transition in Poland," IZA Discussion Papers 448, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Gerard Rpland, 2001. "The Political Economy of Transition," William Davidson Institute Working Papers Series 413, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  10. Irena Grosfeld & Claudia Senik, 2008. "The emerging aversion to inequality - Evidence from long subjective data," PSE Working Papers 2008-19, PSE (Ecole normale supérieure), revised Jul 2008. [Downloadable!]
    Other versions:
  11. Jan Svejnar, 2001. "Transition Economies: Performances and Challenges," William Davidson Institute Working Papers Series 415, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
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