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Income distribution in Croatia:what do the household budget survey data tell us?

Author

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  • Danijel Nestic

    (Institute of Economics, Zagreb)

Abstract

The paper analyses income distribution in Croatia using the Household Budget Survey data. The results point to a mild increase in inequality during the 1998-2002 period. A non-linear increase in pensions in 2001 in favour of the better-off households has contributed to the rising inequality. In the meantime, other social transfers have become better targeted towards the poor suppressing overall inequality increase. Wages and salaries have become increasingly important and more unequally distributed sources of income. The income share of the poorest decile has shrunk due to its lower share in wages and pensions. The paper concludes with a proposal for introducing a panel survey of households in order to improve monitoring of poverty and inequality.

Suggested Citation

  • Danijel Nestic, 2005. "Income distribution in Croatia:what do the household budget survey data tell us?," Financial Theory and Practice, Institute of Public Finance, vol. 29(1), pages 39-53.
  • Handle: RePEc:ipf:finteo:v:29:y:2005:i:1:p:39-53
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    File URL: http://www.ijf.hr/eng/FTP/2005/1/nestic.pdf
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    References listed on IDEAS

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    1. John C. H. Fei & Gustav Ranis & Shirley W. Y. Kuo, 1978. "Growth and the Family Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 92(1), pages 17-53.
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    Cited by:

    1. Ivica Urban, 2008. "Income Redistribution in Croatia: The Role of Individual Taxes and Social Transfers," Financial Theory and Practice, Institute of Public Finance, vol. 32(3), pages 387-403.
    2. Iva Tomic & Joanna Tyrowicz, 2010. "What Happened to the Middle Class in the New Market Economies? The Case of Croatia and Poland," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 9-44, April.

    More about this item

    Keywords

    income distribution; inequality; Croatia;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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