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Wage and Income Inequality in Slovenia, 1993-2002

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Author Info
Tine Stanovnik (University of Ljubljana & Institute for Economic Research Ljubljana)
Miroslav Verbic (Institute for Economic Research Ljubljana)

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Abstract

This paper analyses the dynamics of wage and income inequality in Slovenia from 1993 to 2002, using two different data sources. The first is obtained by extracting relevant information on wage earners from the personal income tax (PIT) database and the second is obtained using published data on wages and the wage distribution. Analyses of both datasets clearly show a large increase in wage inequality in the period 1993-1995. However, even after 1995 wage inequality has been creeping up. To a large degree, we ascribe the major increase in wage inequality to the rapid development of a full-fledged market economy and also to the changing PIT legislation. A growing individualization of wage contracts doubtlessly also contributed to increased inequality. In addition, our analysis touches upon the effects of the tax system and shows that the tax system significantly moderated the large increases in income inequality.

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Paper provided by EconWPA in its series Public Economics with number 0502002.

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Length: 25 pages
Date of creation: 07 Feb 2005
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Handle: RePEc:wpa:wuwppe:0502002

Note: Type of Document - pdf; pages: 25
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Web page: http://129.3.20.41

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Related research
Keywords: income distributions income inequality Slovenia transition wages wage contracts

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Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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References listed on IDEAS
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  1. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July. [Downloadable!] (restricted)
  2. Anthony B Atkinson, 2003. "Income Inequality in OECD Countries: Data and Explanations," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  3. A.B. Atkinson, 1998. "The distribution of income in industrialized countries," Proceedings, Federal Reserve Bank of Kansas City, pages 11-32. [Downloadable!]
  4. Neven Borak & Lovrenc Pfajfar, 2002. "Inequalities in Income Distribution in Slovenia," Post-Communist Economies, Taylor and Francis Journals, vol. 14(4), pages 455-468, December. [Downloadable!] (restricted)
  5. Stanovnik, Tine, 1997. "The returns to education in Slovenia," Economics of Education Review, Elsevier, vol. 16(4), pages 443-449, October. [Downloadable!] (restricted)
  6. Koen Caminada & Kees Goudswaard, 2001. "International Trends in Income Inequality and Social Policy," International Tax and Public Finance, Springer, vol. 8(4), pages 395-415, August. [Downloadable!] (restricted)
  7. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, Oxford University Press, vol. 9(2), pages 201-30, May.
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  8. K. H. O'Rourke, 2001. "Globalization and Inequality: Historical Trends," CEG Working Papers 20015, Trinity College Dublin, Department of Economics. [Downloadable!]
    Other versions:
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