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Income inequality in Eastern Europe: Bulgaria and Czechoslovakia in the twentieth century

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  • Nikolić, Stefan
  • Novokmet, Filip
  • Larysz, Piotr Paweł

Abstract

This article provides novel estimates of long-term income inequality in Bulgaria and Czech Lands/Czechoslovakia in the twentieth century. Relying on newly-constructed datasets and the social tables approach, we measure inequality between salient social strata. We find that Czechoslovakia was significantly more unequal than Bulgaria before 1945. Inequality converged to similarly low levels under socialism. Decomposition analysis by social classes reveals that different levels of inequality in the first half of the century were principally driven by higher within social-class inequality in Czechoslovakia, owing to a more stratified industrial society; whereas a low dispersion within the dominant agricultural sector held down the within social-class component in Bulgaria. A dramatic fall in total inequality after 1945 was a result of the social revolution that encompassed the virtual disappearance of between social-class inequality and a marked reduction in within social-class inequality. Our findings point to the critical role of institutional and political factors in driving inequality in Eastern Europe throughout the twentieth century.

Suggested Citation

  • Nikolić, Stefan & Novokmet, Filip & Larysz, Piotr Paweł, 2024. "Income inequality in Eastern Europe: Bulgaria and Czechoslovakia in the twentieth century," Explorations in Economic History, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:exehis:v:94:y:2024:i:c:s0014498324000305
    DOI: 10.1016/j.eeh.2024.101594
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    More about this item

    Keywords

    Income inequality; Social tables; Bulgaria; Czechoslovakia;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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