A Political Economy Perspective on Redistribution and Growth in Transition
AbstractPoland undertook a rapid and decisive set of political and economic reforms starting in 1989-90, a period that has become known as the big bang. A widely held view is that, in all of the transition economies, the economic upheaval associated with the process of transition has led to substantial increases in inequality, thereby complicating the process of reform. In this paper, we use micro data from the Polish Household Budget Surveys (HBS) to show that the increase in overall income inequality in Poland during the transition was actually quite modest. Our analysis indicates that social transfers played an important role in attenuating the rise in overall income inequality and, by extension, in maintaining the social and political cohesion that was essential for the reform process.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 54289.
Date of creation: 2001
Date of revision:
economics of transition; inequality; growth; Poland;
Find related papers by JEL classification:
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
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