Consumption and Income Inequality During the Transition to a Market Economy: Poland, 1985–1992
This paper challenges the conventional wisdom that income and consumption inequality in Poland increased substantially following the economic transition in 1989–90. Using microdata from the 1985–92 Household Budget Surveys, we find that overall income inequality increased in 1989 but subsequently declined to pretransition levels. The distribution of consumption reveals a similar pattern. Social transfers are shown to have played an important role in mitigating increases in overall income inequality during the transition. However, the relative well-being of different socioeconomic groups was altered and, despite the reasonably good targeting of transfers, there were clear winners and losers in the transition process.
|Date of creation:||2001|
|Publication status:||Published in IMF Staff Papers Special Issue, IMF Annual Research Conference 2001.47(2001): pp. 121-154|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Brunon Gorecki, 1994. "Evidence of a New Shape of Income Distribution in Poland," Eastern European Economics, Taylor & Francis Journals, vol. 32(3), pages 32-51, June.
- McClements, L. D., 1977. "Equivalence scales for children," Journal of Public Economics, Elsevier, vol. 8(2), pages 191-210, October.
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