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Rowing Between Scylla and Charybdis: Income Transitions in Central European Households

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  • Timothy Smeeding
  • Barbara Torrey
  • Debra Bailey Whitman

Abstract

This paper examines household level economic changes in Central and Eastern Europe before and during the transformations of their economies. The authors test the assumptions that the economic transitions would increase poverty and income inequality within the Czech Republic, Slovak Republic, Hungary, and Poland, and that vulnerable populations would bear a disproportionate burden of the economic decline. The data suggest that while Central European economies suffered rapid declines, the poverty rates of individuals increased only slightly. A simulation of the effects of adding the informal economy on the income distribution in Hungary showed some changes in inequality calculations while aggregate consumption patterns showed increases in consumption of durables and luxury goods. The adverse effects of macroeconomic decline were thought to be buffered by government social policy and other household coping behavior.

Suggested Citation

  • Timothy Smeeding & Barbara Torrey & Debra Bailey Whitman, 1995. "Rowing Between Scylla and Charybdis: Income Transitions in Central European Households," LIS Working papers 132, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:132
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    Cited by:

    1. Istv n T th & Michael F rster, 1998. "The Effects of Changing Labor Markets and Social Policies on Income Inequality and Poverty: Hungary and the Other Visegrad Countries Compared," LIS Working papers 177, LIS Cross-National Data Center in Luxembourg.
    2. Barr, Nicholas, 1996. "Income transfers in transition : constraints and progress," LSE Research Online Documents on Economics 281, London School of Economics and Political Science, LSE Library.

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