Models of Capitalism and Income Distribution in Transition Economies: A Comparative Perspective
During the 1990s, all of the European transition economies (TE) experienced a major recession and suffered from the explosion of income inequality. However, distribution of income between labor and capital differed greatly from one group of post-communist countries to another. The paper discusses and analyzes linkages between models of capitalism that emerged in former communist countries in the 1990s and the outcome of capitalist transition for labor in terms of income distribution and inequality. It is based on the estimates of the Marxian rate of exploitation and other indicators of labor income performance during the reform period.
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