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Income Inequality and Incentives. The Quasi-Natural Experiment of Hungary 1914-2008

Author

Listed:
  • Dimitris Mavridis

    (uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg)

  • Pálma Mosberger

    (CEU - Central European University [Budapest, Hongrie], European Commission [Brussels])

Abstract

We construct the first top income share series of a formerly socialist economy before, during, and after socialism in order to exploit the quasi-natural experiment of the absence of markets on incentives and income inequality. We investigate top income shares dynamics and the sources of income at the upper tail of the income distri- bution. Within this setup, we study the effect of capital markets and liberalized wage settings on top income shares. Our estimates show that the introduction of wage-setting decentralization had a role in increasing the skill premium and income inequality in years prior the transition.

Suggested Citation

  • Dimitris Mavridis & Pálma Mosberger, 2017. "Income Inequality and Incentives. The Quasi-Natural Experiment of Hungary 1914-2008," Working Papers halshs-02797438, HAL.
    • Handle: RePEc:hal:wpaper:halshs-02797438
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02797438v1
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    References listed on IDEAS

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    1. Schulze, Max-Stephan, 2000. "Patterns of growth and stagnation in the late nineteenth century Habsburg economy," European Review of Economic History, Cambridge University Press, vol. 4(3), pages 311-340, December.
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    7. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
    8. Héthy, Lajos., 1990. "Urban self-employment in Hungary," ILO Working Papers 992754553402676, International Labour Organization.
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    Cited by:

    1. Thomas Blanchet & Lucas Chancel & Amory Gethin, 2022. "Why Is Europe More Equal than the United States?," American Economic Journal: Applied Economics, American Economic Association, vol. 14(4), pages 480-518, October.
    2. 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.
    3. Filip Novokmet & Thomas Piketty & Gabriel Zucman, 2018. "From Soviets to oligarchs: inequality and property in Russia 1905-2016," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 189-223, June.

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