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Inequality in Croatia in the period from 1973 to 1998

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  • Danijel Nestic

    (Institute of Economics, Zagreb)

Abstract

This paper explores the changes in inequality in Croatia during the period 1973-1998. The results based on the data from the Household Budget Surveys for 1973, 1978, 1983, 1988 and 1998 indicate that overall income inequality decreased in the 1973-1983 period, and increased afterwards. Gini coefficient rose from 0.286 in 1988 to 0.297 in 1998. This result challenges the general perception that inequality increased strongly during the transition period. Decomposition of Gini changes shows that the expansion of social transfers as well as absence of stronger rise in wage concentration account for only a mild increase in inequality.

Suggested Citation

  • Danijel Nestic, 2003. "Inequality in Croatia in the period from 1973 to 1998," Occasional paper series 17, Institute of Public Finance.
    • Handle: RePEc:ipf:occasi:17
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    File URL: http://www.ijf.hr/OPS/17.pdf
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    References listed on IDEAS

    as
    1. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
    2. Michael P. Keane & Eswar S. Prasad, 2002. "Inequality, Transfers, And Growth: New Evidence From The Economic Transition In Poland," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 324-341, May.
    3. Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(3), pages 451-473.
    4. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
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    More about this item

    Keywords

    inequality; income distribution; social transfers; transition; Croatia;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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