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Wage and Income Inequality in Slovenia, 1993-2002

  • Tine Stanovnik
  • Miroslav Verbic

This article analyses the dynamics of wage and income inequality in Slovenia from 1993 to 2002, using two different data sources. The first is obtained by extracting relevant information on wage earners from the personal income tax (PIT) database and the second is obtained using published data on wages and the wage distribution. Analyses of both datasets clearly show a large increase in wage inequality in 1993-95. However, even after 1995 wage inequality has been creeping up. To a large degree, we ascribe the major increase in wage inequality to the rapid development of a full-fledged market economy and also to the changing PIT legislation. A growing individualisation of wage contracts doubtless also contributed to increased inequality. In addition, our analysis touches upon the effects of the tax system and shows that it significantly moderated the large increases in income inequality.

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Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 17 (2005)
Issue (Month): 3 ()
Pages: 381-397

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Handle: RePEc:taf:pocoec:v:17:y:2005:i:3:p:381-397
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  1. Koen Caminada & Kees Goudswaard, 2001. "International Trends in Income Inequality and Social Policy," International Tax and Public Finance, Springer, vol. 8(4), pages 395-415, August.
  2. Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
  3. Neven Borak & Lovrenc Pfajfar, 2002. "Inequalities in Income Distribution in Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 14(4), pages 455-468.
  4. Anthony C. Atkinson, 2003. "Income Inequality in OECD Countries: Data and Explanations," CESifo Working Paper Series 881, CESifo Group Munich.
  5. A.B. Atkinson, 1998. "The distribution of income in industrialized countries," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 11-32.
  6. Stanovnik, Tine, 1997. "The returns to education in Slovenia," Economics of Education Review, Elsevier, vol. 16(4), pages 443-449, October.
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