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Employment Polarisation and Inequality in the UK and Hungary


  • Redmond, G.
  • Kattuman, P.


This paper uses household budget survey microdata to explore the growth in household income inequality in Hungary for the period 1987 to 1995, and compares it with inequality in the UK in 1995/96. Decomposition of inequality according to both household characteristics and income sources shows that, while inequality did grow rapidly in Hungary over the early Transition period, several factors prevented its growth to even higher levels. One of these factors, the distribution of employment and earnings between households with and without employed members was less of a feature in Hungary than in the UK. A narrowing of the gender pay gap and a continued high level of female participation appears to have ensured that, though earnings inequality in Hungary increased to surpass that in the UK, the distribution of household earnings and the distribution of household incomes remained more equal in Hungary.

Suggested Citation

  • Redmond, G. & Kattuman, P., 2000. "Employment Polarisation and Inequality in the UK and Hungary," Cambridge Working Papers in Economics 0006, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0006
    Note: L

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    References listed on IDEAS

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    Cited by:

    1. Molnár, György & Kapitány, Zsuzsa, 2002. "Egyenlőtlenség és mobilitás a magyar háztartások jövedelmében, kiadásaiban és tartós fogyasztási cikkeinek állományában
      [Inequality and mobility in the income, expenditures and consumer-durable sto
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1015-1041.
    2. Claire Ravel, 2007. "La polarisation de l'emploi au sein des ménages de 1975 à 2002," Économie et Statistique, Programme National Persée, vol. 402(1), pages 3-23.
    3. Rafael De Hoyos, 2012. "Accounting for Mexican Income Inequality During the 1990s," Journal of Income Distribution, Journal of Income Distribution, vol. 21(3-4), pages 103-125, November.
    4. Zsuzsa Kapitany & Gyorgy Molnar, 2002. "Inequality and mobility analysis by the Hungarian Rotation Panel, 1993-98," IEHAS Discussion Papers 0204, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    5. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni dell'Istituto di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    6. Jirí Vecerník, 2010. "Earnings Disparities and Income Inequality in CEE Countries: An Analysis of Development and Relationships," LIS Working papers 540, LIS Cross-National Data Center in Luxembourg.
    7. repec:crs:ecosta:es402a is not listed on IDEAS
    8. Stephen Hynes & Cathal O’Donoghue, 2005. "Trends in Farm Income Mobility and Inequality in Ireland," Working Papers 0505, Rural Economy and Development Programme,Teagasc.
    9. Galasi, Péter & Nagy, Gyula, 2008. "Jövedelmek és munkanélküli-ellátások
      [Targeting unemployment benefits in Hungary]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 473-502.

    More about this item


    Income inequality; Employment polarisation; UK; Hungary; Transition;

    JEL classification:

    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor


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