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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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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NBER Working Papers
5583, National Bureau of Economic Research, Inc.
- Simon Commander & Andrei Tolstopiatenko & Ruslan Yemtsov, 1999.
"Channels of redistribution: Inequality and poverty in the Russian transition,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 7(2), pages 411-447, July.
- Simon Commander & Andrei Tolstopiantenko & Ruslan Yemtsov, 1997. "Channels of Redistribution: Inequality and Poverty in the Russian Transition," William Davidson Institute Working Papers Series 42, William Davidson Institute at the University of Michigan.
- Galor, Oded & Zeira, Joseph, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Wiley Blackwell, vol. 60(1), pages 35-52, January.
- repec:cup:cbooks:9780521438827 is not listed on IDEAS
- repec:cup:cbooks:9780521433297 is not listed on IDEAS
- Thesia I. Garner & Katherine Terrell, 1997. "Changes in Distribution and Welfare in Transition Economies: Market vs. Policy in the Czech Republic and Slovakia," William Davidson Institute Working Papers Series 77, William Davidson Institute at the University of Michigan.
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