Economic transition and the distributions of income and wealth
Using a model of wealth distribution dynamics and occupational choice, the author investigates the distributional consequences of policies and developments associated with the transition from central planning to a market system. The model suggests that even an efficient privatization designed to be egalitarian may lead to increases in inequality (and possibly poverty), both during the transition and in the new steady state. Creating new markets in services that are also supplied by the public sector may also contribute to an increase in inequality. So can labor market reforms that lead to a decompression of the earnings structure and to greater flexibility in employment. The results underline the importance of retaining government provision of basic public goods and services, removing barriers that prevent the participation of the poor in the new private sector, and ensuring that suitable safety nets are in place.
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Volume (Year): 7 (1999)
Issue (Month): 2 (July)
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- repec:cup:cbooks:9780521438827 is not listed on IDEAS
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LSE Research Online Documents on Economics
6586, London School of Economics and Political Science, LSE Library.
- Francisco H.G. Ferreira & Julie Litchfield, 1998. "Education or Inflation? The Roles of Structural Factors and Macroeconomic Instability in Explaining Brazilian Inequality in the 1980s," STICERD - Distributional Analysis Research Programme Papers 41, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 7(2), pages 411-447, July.
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- repec:cup:cbooks:9780521433297 is not listed on IDEAS
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