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Inequality, democracy and taxation: lessons from the post-communist transition

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  • Christopher Gerry

    (UCL School of Slavonic and East European Studies)

  • Tomasz Marek Mickiewicz

    (UCL School of Slavonic and East European Studies)

Abstract

Using data for post-communist economies (1989-2002), we examine the determinants of income inequality. We find a strong positive association between equality and tax collection but note that this relationship is significantly stronger under authoritarian regimes than under democracies. We also discover that early macroeconomic stabilisation resulted in lower inequality; we confirm that education fosters equality and find that larger countries are prone to higher levels of inequality.

Suggested Citation

  • Christopher Gerry & Tomasz Marek Mickiewicz, 2007. "Inequality, democracy and taxation: lessons from the post-communist transition," UCL SSEES Economics and Business working paper series 74, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:74
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    Cited by:

    1. Mahyudin Ahmad, 2017. "Economic Freedom and Income Inequality: Does Political Regime Matter?," Economies, MDPI, vol. 5(2), pages 1-28, June.
    2. Gugushvili, Alexi & Reeves, Aaron, 2021. "How democracy alters our view of inequality — and what it means for our health," Social Science & Medicine, Elsevier, vol. 283(C).
    3. Alexei Izyumov & Trista Claxon, 2009. "Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(3), pages 733-758.
    4. Bruno Emmanuel Ongo Nkoa & Jacques Simon Song, 2022. "Does Institutional Quality increase inequalities in Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1896-1927, September.
    5. Tullio Buccellato & Tomasz Marek Mickiewicz, 2007. "Oil and gas: a blessing for few hydrocarbons and within-region inequality in Russia," UCL SSEES Economics and Business working paper series 80, UCL School of Slavonic and East European Studies (SSEES), revised Feb 2008.
    6. Jens Holscher & Cristiano Perugini & Fabrizio Pompei, 2011. "Wage inequality, labour market flexibility and duality in Eastern and Western Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 23(3), pages 271-310.
    7. Aristei, David & Perugini, Cristiano, 2012. "Inequality and reforms in transition countries," Economic Systems, Elsevier, vol. 36(1), pages 2-10.

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    More about this item

    Keywords

    income inequality; democracy; authoritarian regimes; taxes; transition;
    All these keywords.

    JEL classification:

    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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