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Income Distribution, Economic Systems and Transition

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Author Info
John Flemming
John Micklewright

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Abstract

The differences in income distribution between market and planned economies are considered in two ways. First, using benchmarks from the OECD area, evidence from the countries of Central and Eastern Europe and the former Soviet Union during the socialist period is reviewed. Second, the authors consider the transitions currently being made by the latter countries. Three factors are then considered: (i) the distribution of earnings of full-time employees, (ii) the distribution of individuals’ per capita household incomes, and (iii) the ways in which non-wage benefits from work, price subsidies and social incomes in kind change the picture. For the socialist period long series of data, often covering several decades, are available and thus changes in distribution under the socialist system can be tracked and diversity between the countries shown. For the period of transition, the series of data are inevitably shorter, however, it is possible to avoid basing conclusions on evidence drawn from single years. During transition, as under socialism, the picture is varied. Russia has experienced very sharp increases in measured inequality to well above the top of the OECD range. The Czech Republic, Hungary and Poland have seen more modest rises. However, a satisfactory analytic framework encompassing enough features of the transition to help interpretation of the data is lacking.

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Publisher Info
Paper provided by UNICEF Innocenti Research Centre in its series Innocenti Occasional Papers, Economic Policy Series with number iopeps99/69.

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Length: 100
Date of creation: 1999
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Handle: RePEc:ucf:iopeps:iopeps99/69

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Related research
Keywords: comparative analysis; economic transition; income distribution;

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Find related papers by JEL classification:
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects

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  1. Mark Gradstein & Branko Milanovic & Yvonne Ying, 2001. "Democracy and Income In-Equality: An Empirical Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  2. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank. [Downloadable!]
  3. Stephen P. Jenkins & John Micklewright, 2007. "New Directions in the Analysis of Inequality and Poverty," Working Papers 71, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
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  4. François Rycx & Ilan Tojerow & Daphné Valsamis, 2008. "Wage differentials across sectors in Europe: an east-west comparison," Working Papers DULBEA 08-17.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  5. Branko Milanovic & Mark Gradstein & Yvonne Ying, 2003. "Democracy, Ideology And Income Inequality: An Empirical Analysis," Public Economics 0305002, EconWPA. [Downloadable!]
  6. Gerardo Angeles-Castro, 2006. "The Relationship Between Economic Growth and Inequality: Evidence from the Age of Market Liberalism," Studies in Economics 0601, Department of Economics, University of Kent. [Downloadable!]
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  8. Gerardo Angeles-Castro, 2006. "The relationship between economic growth and inequality: evidence from the age of market liberalism," DEGIT Conference Papers c011_009, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
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  10. Grosjean, Pauline & Senik, Claudia, 2008. "Why Populist Democracy Promotes Market Liberalization," IZA Discussion Papers 3527, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series 470, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  12. Suhrcke, Marc, 2001. "Preferences for Inequality: East vs. West," Discussion Paper Series 26369, Hamburg Institute of International Economics. [Downloadable!]
  13. Kevin Denny & Patrick Orla Doyle, 2005. "Returns to basic skills in Central and Eastern Europe - a semi-parametric approach," Working Papers 200507, School Of Economics, University College Dublin. [Downloadable!]
  14. Peter H. Lindert & Jeffrey G. Williamson, 2003. "Does Globalization Make the World More Unequal?," NBER Chapters, in: Globalization in Historical Perspective, pages 227-276 National Bureau of Economic Research, Inc. [Downloadable!]
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  15. Grogan, L., 2002. "What Caused the Post-Transition Fertility Decline in Central and Eastern Europe and the Former Soviet Union?," Working Papers 2002-5, University of Guelph, Department of Economics. [Downloadable!]
  16. Pauline Grosjean & Claudia Senik, 2008. "How populist democracy promotes market liberalization," PSE Working Papers 2008-39, PSE (Ecole normale supérieure). [Downloadable!]
  17. Vasco Molini & Guanghua Wan, 2008. "Discovering sources of inequality in transition economies: a case study of rural Vietnam," Economic Change and Restructuring, Springer, vol. 41(1), pages 75-96, March. [Downloadable!] (restricted)
  18. Heshmati, Almas, 2004. "Regional Income Inequality in Selected Large Countries," IZA Discussion Papers 1307, Institute for the Study of Labor (IZA). [Downloadable!]
  19. Yuriy Gorodnichenko & Klara Sabirianova Peter & Dmitriy Stolyarov, 2009. "Inequality and Volatility Moderation in Russia: Evidence from Micro-Level Panel Data on Consumption and Income," International Studies Program Working Paper Series, at AYSPS, GSU paper0905, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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