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From Needs to the Market: Changing Inequality of Household Income in the Czech Transition

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  • Jiri Vecernik

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Abstract

Statistical income surveys are used to document systemic changes in distribution and redistribution of household income and its determinants over the period 1988-1996. First, the growing difficulties facing income surveys under the democratic regime are considered. Secondly, the substantive meaning of various income indicators and their relation to the social and economic situation is discussed. Next, growing disparities in income after 1989 and the shift away from demographic factors (numbers of active earners and children, age) to socio-economic factors (education, branch, occupation) are displayed. The fourth part documents the increased redistribution of income achieved through taxes and social benefits. The fifth part compares the Czech case with Western countries in order to evaluate the extent to which income distribution has adjusted to the market economy. The conclusion offers a summary of main findings and discusses some additional resources of family welfare during the transition period.

Suggested Citation

  • Jiri Vecernik, 2001. "From Needs to the Market: Changing Inequality of Household Income in the Czech Transition," William Davidson Institute Working Papers Series 370, William Davidson Institute at the University of Michigan.
  • Handle: RePEc:wdi:papers:2001-370
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/39754/3/wp370.pdf
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    References listed on IDEAS

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    1. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521433297, May.
    2. Michael F. Förster, 2000. "Trends and Driving Factors in Income Distribution and Poverty in the OECD Area," OECD Labour Market and Social Policy Occasional Papers 42, OECD Publishing.
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    Cited by:

    1. FFF1Vladimíra NNN1Kantorová, 2004. "Education and Entry into Motherhood: The Czech Republic during State Socialism and the Transition Period (1970-1997)," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 3(10), pages 245-274, April.
    2. Gustafsson, Bjorn & Nivorozhkina, Ludmila, 2005. "How and why transition made income inequality increase in urban Russia: A local study," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 772-787, December.
    3. Jiøí Veèerník, 2006. "Income Taxes and Social Benefits among Czech Employees - Changes since 1989 and a Cross-national Comparison (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 56(1-2), pages 2-17, January.

    More about this item

    Keywords

    Household income; income inequality; Czech Republic; redistribution; market adjustment;

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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