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Determinants of inequality in transition countries

Author

Listed:
  • Michal Brzezinski

    (University of Warsaw, Poland)

  • Katarzyna Salach

    (University of Warsaw, Poland)

Abstract

High levels of economic inequality may lead to lower economic growth and can have negative social and political impacts. Recent empirical research shows that income and wealth inequalities in Eastern Europe since the fall of socialism increased significantly more than previously suggested. Currently, the average Gini index (a common measure) of inequality in Eastern Europe is about 3 percentage points higher than in the rest of Europe. This rise in inequality was initially driven by privatization, liberalization, and deregulation reforms, and, more recently, has been amplified by technological change and globalization coupled with relatively ungenerous income and wealth redistribution policies.

Suggested Citation

  • Michal Brzezinski & Katarzyna Salach, 2022. "Determinants of inequality in transition countries," World of Labour, LISER, pages 496-496, June.
    • Handle: RePEc:iza:izawol:journl:2022:n:496
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    References listed on IDEAS

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    3. Nolan, Brian & Salverda, Wiemer & Checchi, Daniele & Marx, Ive & McKnight, Abigail & Toth, Istvan Gy (ed.), 2014. "Changing Inequalities and Societal Impacts in Rich Countries: Thirty Countries' Experiences," OUP Catalogue, Oxford University Press, number 9780199687428.
    4. Brzezinski, Michal & Sałach, Katarzyna, 2021. "Factors that account for the wealth inequality differences between post-socialist countries," Economic Modelling, Elsevier, vol. 105(C).
    5. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    6. Magda, Iga & Gromadzki, Jan & Moriconi, Simone, 2021. "Firms and wage inequality in Central and Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 499-552.
    7. Thomas Blanchet & Lucas Chancel & Amory Gethin, 2019. "How Unequal is Europe? Evidence from Distributional National Accounts, 1980-2017," Working Papers hal-02877000, HAL.
    8. Ľuboš Pástor & Pietro Veronesi, 2021. "Inequality Aversion, Populism, and the Backlash against Globalization," Journal of Finance, American Finance Association, vol. 76(6), pages 2857-2906, December.
    9. Paweł Bukowski & Filip Novokmet, 2021. "Between communism and capitalism: long-term inequality in Poland, 1892–2015," Journal of Economic Growth, Springer, vol. 26(2), pages 187-239, June.
    10. David Aristei & Cristiano Perugini, 2014. "Speed and Sequencing of Transition Reforms and Income Inequality: A Panel Data Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 542-570, September.
    11. Michał Brzeziński & Katarzyna Sałach & Marcin Wroński, 2020. "Wealth inequality in Central and Eastern Europe: Evidence from household survey and rich lists’ data combined," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(4), pages 637-660, October.
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    Cited by:

    1. Costa-Font, Joan & Nicinska, Anna & Rossello Roig, Melcior, 2025. "The Inequality and Mobility of Exposure to European Soviet Communism," IZA Discussion Papers 17934, IZA Network @ LISER.
    2. Edison Jakurti, 2024. "Business Equity and Wealth Inequality in Central and Eastern Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(4), pages 717-752, December.
    3. Monika Anna Wesołowska, 2024. "Nierówności dochodowe w krajach postsocjalistycznych – analiza wybranych determinant," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 73-90.
    4. Benard Ohene Kwatia & Godfred Amewu & Christopher Boachie, 2024. "Examining the impact of personal freedom on income inequality: Evidence from Sub-Saharan Africa and Western European regions," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-19, April.
    5. Wesołowska, Monika Anna, . "Nierówności dochodowe w krajach postsocjalistycznych – analiza wybranych determinant," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2024(1).

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    Keywords

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    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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