Increasing Inequality in Transition Economies : Is There More to Come?
This paper decomposes changes in inequality, which has in general been increasing in the transition economies of Eastern Europe and the former Soviet Union, both by income source and socio-economic group, with a view to understanding the determinants of inequality and assessing how it might evolve i...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2006/09/7056839/increasing-inequality-transition-economies-more-come http://hdl.handle.net/10986/9269 |
| id |
okr-10986-9269 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE CHANGES IN INEQUALITY COEFFICIENT OF INEQUALITY COMMAND ECONOMY CONCENTRATION COEFFICIENTS CONSUMPTION INEQUALITY COUNTERFACTUAL COUNTRY COMPARISONS COUNTRY EXPERIENCES CPI DATA SET DATA SETS DECOMPOSITION OF INEQUALITY DEVELOPMENT ECONOMICS DISTRIBUTION OF ASSETS DISTRIBUTION OF INCOME DISTRIBUTIONAL OUTCOMES DISTRIBUTIONS OF INCOME ECONOMIC DECLINE ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC VALUE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EVOLUTION OF INEQUALITY FINANCIAL CRISIS GDP GDP PER CAPITA GINI COEFFICIENT GINI INDEX GRADUAL INCREASE HBS HIGH INEQUALITY HIGH INEQUALITY COUNTRY HIGH INFLATION HOUSEHOLD BUDGET SURVEY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME DISPARITIES INCOME DISTRIBUTION INCOME INEQUALITY INCOME SHARES INCOME SOURCE INCOME SOURCES INCOME STUDY INCOMES INCREASED INEQUALITY INCREASING INEQUALITY INCREASING WAGE INCREASING WAGE INEQUALITY INDEX OF INEQUALITY INEQUALITY INEQUALITY DATA INEQUALITY ESTIMATES INEQUALITY IN TRANSITION ECONOMIES INEQUALITY LEVELS INEQUALITY OUTCOMES INFLATION RATES INVESTMENT CLIMATE JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKETS LABOR REALLOCATION LIVING STANDARDS LOW INCOME MARKET ECONOMIES MEASURES OF INEQUALITY MINIMUM WAGES MONETARY POLICY OBSERVED CHANGE OLD AGE OVERALL INEQUALITY PENSIONS PER CAPITA CONSUMPTION PER CAPITA INCOMES POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POOR POVERTY ASSESSMENTS POVERTY REDUCTION PRIVATE AGENTS PRIVATE SECTOR PUBLIC TRANSFERS RAPID GROWTH RAPID INCREASE REAL GDP REAL PER CAPITA INCOME REAL WAGES REDISTRIBUTIVE EFFECTS RELATIVE IMPORTANCE RISING INEQUALITY SECTOR EMPLOYMENT SERIOUS IMPLICATIONS SIMULATIONS SKILLED WORKERS SOCIAL ASSISTANCE SOCIAL PROGRAMS SOCIAL SAFETY SOCIAL SAFETY NETS SOCIAL TRANSFERS SPATIAL DIFFERENCES STRUCTURAL CHANGE TAXATION TOTAL INEQUALITY TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT BENEFITS VALUE ADDED WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WEALTH |
| spellingShingle |
AGRICULTURE CHANGES IN INEQUALITY COEFFICIENT OF INEQUALITY COMMAND ECONOMY CONCENTRATION COEFFICIENTS CONSUMPTION INEQUALITY COUNTERFACTUAL COUNTRY COMPARISONS COUNTRY EXPERIENCES CPI DATA SET DATA SETS DECOMPOSITION OF INEQUALITY DEVELOPMENT ECONOMICS DISTRIBUTION OF ASSETS DISTRIBUTION OF INCOME DISTRIBUTIONAL OUTCOMES DISTRIBUTIONS OF INCOME ECONOMIC DECLINE ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC VALUE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EVOLUTION OF INEQUALITY FINANCIAL CRISIS GDP GDP PER CAPITA GINI COEFFICIENT GINI INDEX GRADUAL INCREASE HBS HIGH INEQUALITY HIGH INEQUALITY COUNTRY HIGH INFLATION HOUSEHOLD BUDGET SURVEY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME DISPARITIES INCOME DISTRIBUTION INCOME INEQUALITY INCOME SHARES INCOME SOURCE INCOME SOURCES INCOME STUDY INCOMES INCREASED INEQUALITY INCREASING INEQUALITY INCREASING WAGE INCREASING WAGE INEQUALITY INDEX OF INEQUALITY INEQUALITY INEQUALITY DATA INEQUALITY ESTIMATES INEQUALITY IN TRANSITION ECONOMIES INEQUALITY LEVELS INEQUALITY OUTCOMES INFLATION RATES INVESTMENT CLIMATE JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKETS LABOR REALLOCATION LIVING STANDARDS LOW INCOME MARKET ECONOMIES MEASURES OF INEQUALITY MINIMUM WAGES MONETARY POLICY OBSERVED CHANGE OLD AGE OVERALL INEQUALITY PENSIONS PER CAPITA CONSUMPTION PER CAPITA INCOMES POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POOR POVERTY ASSESSMENTS POVERTY REDUCTION PRIVATE AGENTS PRIVATE SECTOR PUBLIC TRANSFERS RAPID GROWTH RAPID INCREASE REAL GDP REAL PER CAPITA INCOME REAL WAGES REDISTRIBUTIVE EFFECTS RELATIVE IMPORTANCE RISING INEQUALITY SECTOR EMPLOYMENT SERIOUS IMPLICATIONS SIMULATIONS SKILLED WORKERS SOCIAL ASSISTANCE SOCIAL PROGRAMS SOCIAL SAFETY SOCIAL SAFETY NETS SOCIAL TRANSFERS SPATIAL DIFFERENCES STRUCTURAL CHANGE TAXATION TOTAL INEQUALITY TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT BENEFITS VALUE ADDED WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WEALTH Mitra, Pradeep Yemtsov, Ruslan Increasing Inequality in Transition Economies : Is There More to Come? |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper; No. 4007 |
| description |
This paper decomposes changes in inequality, which has in general been increasing in the transition economies of Eastern Europe and the former Soviet Union, both by income source and socio-economic group, with a view to understanding the determinants of inequality and assessing how it might evolve in the future. The empirical analysis relies on a set of inequality statistics that, unlike "official data", are consistent and comparable across countries and are based on primary records from household surveys recently put together for the World Bank study "Growth, Poverty and Inequality in Eastern Europe and the Former Soviet Union: 1998-2003" [World Bank (2005b)]. The increase in inequality in transition, as predicted by a number of theoretical models, in practice differed substantially across countries, with the size and speed of its evolution depending on the relative importance of its key determinants, viz., changes in the wage distribution, employment, entrepreneurial incomes and social safety nets. Its evolution was also influenced by policy. This diversity of outcomes is exemplified on the one hand for Central Europe by Poland, where the increase in inequality has been steady but gradual and reflects, inter alia, larger changes in employment and compensating adjustments in social safety nets and, on the other for the Commonwealth of Independent States by Russia, where an explosive overshooting of inequality peaked in the mid-1990s before being moderated through the extinguishing of wage arrears during its post-1998 recovery. The paper argues that the process of transition to a market economy is not complete and that further evolution of inequality will depend both on (i) transition-related factors, such as the evolution of the education premium, a bias in the investment climate against new private sector firms which are important vehicles of job creation and regional impediments to mobility of goods and labor, as well as increasingly (ii) other factors, such as technological change and globalization. The paper also contrasts key features of inequality in Russia in the context of other transition economies with trends in inequality observed in China where rapid economic growth has been accompanied by a steep increase in inequality. It argues that the latter's experience is, to a large extent, a developmental, rather than a transition-related phenomenon deriving from the rural-urban divide and is, therefore, of limited relevance for predicting changes in inequality in Russia. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Mitra, Pradeep Yemtsov, Ruslan |
| author_facet |
Mitra, Pradeep Yemtsov, Ruslan |
| author_sort |
Mitra, Pradeep |
| title |
Increasing Inequality in Transition Economies : Is There More to Come? |
| title_short |
Increasing Inequality in Transition Economies : Is There More to Come? |
| title_full |
Increasing Inequality in Transition Economies : Is There More to Come? |
| title_fullStr |
Increasing Inequality in Transition Economies : Is There More to Come? |
| title_full_unstemmed |
Increasing Inequality in Transition Economies : Is There More to Come? |
| title_sort |
increasing inequality in transition economies : is there more to come? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/09/7056839/increasing-inequality-transition-economies-more-come http://hdl.handle.net/10986/9269 |
| _version_ |
1764406529597898752 |
| spelling |
okr-10986-92692021-04-23T14:02:41Z Increasing Inequality in Transition Economies : Is There More to Come? Mitra, Pradeep Yemtsov, Ruslan AGRICULTURE CHANGES IN INEQUALITY COEFFICIENT OF INEQUALITY COMMAND ECONOMY CONCENTRATION COEFFICIENTS CONSUMPTION INEQUALITY COUNTERFACTUAL COUNTRY COMPARISONS COUNTRY EXPERIENCES CPI DATA SET DATA SETS DECOMPOSITION OF INEQUALITY DEVELOPMENT ECONOMICS DISTRIBUTION OF ASSETS DISTRIBUTION OF INCOME DISTRIBUTIONAL OUTCOMES DISTRIBUTIONS OF INCOME ECONOMIC DECLINE ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC VALUE EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EVOLUTION OF INEQUALITY FINANCIAL CRISIS GDP GDP PER CAPITA GINI COEFFICIENT GINI INDEX GRADUAL INCREASE HBS HIGH INEQUALITY HIGH INEQUALITY COUNTRY HIGH INFLATION HOUSEHOLD BUDGET SURVEY HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME INCOME DISPARITIES INCOME DISTRIBUTION INCOME INEQUALITY INCOME SHARES INCOME SOURCE INCOME SOURCES INCOME STUDY INCOMES INCREASED INEQUALITY INCREASING INEQUALITY INCREASING WAGE INCREASING WAGE INEQUALITY INDEX OF INEQUALITY INEQUALITY INEQUALITY DATA INEQUALITY ESTIMATES INEQUALITY IN TRANSITION ECONOMIES INEQUALITY LEVELS INEQUALITY OUTCOMES INFLATION RATES INVESTMENT CLIMATE JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKETS LABOR REALLOCATION LIVING STANDARDS LOW INCOME MARKET ECONOMIES MEASURES OF INEQUALITY MINIMUM WAGES MONETARY POLICY OBSERVED CHANGE OLD AGE OVERALL INEQUALITY PENSIONS PER CAPITA CONSUMPTION PER CAPITA INCOMES POLICY IMPLICATIONS POLICY MEASURES POLICY RESEARCH POOR POVERTY ASSESSMENTS POVERTY REDUCTION PRIVATE AGENTS PRIVATE SECTOR PUBLIC TRANSFERS RAPID GROWTH RAPID INCREASE REAL GDP REAL PER CAPITA INCOME REAL WAGES REDISTRIBUTIVE EFFECTS RELATIVE IMPORTANCE RISING INEQUALITY SECTOR EMPLOYMENT SERIOUS IMPLICATIONS SIMULATIONS SKILLED WORKERS SOCIAL ASSISTANCE SOCIAL PROGRAMS SOCIAL SAFETY SOCIAL SAFETY NETS SOCIAL TRANSFERS SPATIAL DIFFERENCES STRUCTURAL CHANGE TAXATION TOTAL INEQUALITY TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT BENEFITS VALUE ADDED WAGE DIFFERENTIALS WAGE INEQUALITY WAGES WEALTH This paper decomposes changes in inequality, which has in general been increasing in the transition economies of Eastern Europe and the former Soviet Union, both by income source and socio-economic group, with a view to understanding the determinants of inequality and assessing how it might evolve in the future. The empirical analysis relies on a set of inequality statistics that, unlike "official data", are consistent and comparable across countries and are based on primary records from household surveys recently put together for the World Bank study "Growth, Poverty and Inequality in Eastern Europe and the Former Soviet Union: 1998-2003" [World Bank (2005b)]. The increase in inequality in transition, as predicted by a number of theoretical models, in practice differed substantially across countries, with the size and speed of its evolution depending on the relative importance of its key determinants, viz., changes in the wage distribution, employment, entrepreneurial incomes and social safety nets. Its evolution was also influenced by policy. This diversity of outcomes is exemplified on the one hand for Central Europe by Poland, where the increase in inequality has been steady but gradual and reflects, inter alia, larger changes in employment and compensating adjustments in social safety nets and, on the other for the Commonwealth of Independent States by Russia, where an explosive overshooting of inequality peaked in the mid-1990s before being moderated through the extinguishing of wage arrears during its post-1998 recovery. The paper argues that the process of transition to a market economy is not complete and that further evolution of inequality will depend both on (i) transition-related factors, such as the evolution of the education premium, a bias in the investment climate against new private sector firms which are important vehicles of job creation and regional impediments to mobility of goods and labor, as well as increasingly (ii) other factors, such as technological change and globalization. The paper also contrasts key features of inequality in Russia in the context of other transition economies with trends in inequality observed in China where rapid economic growth has been accompanied by a steep increase in inequality. It argues that the latter's experience is, to a large extent, a developmental, rather than a transition-related phenomenon deriving from the rural-urban divide and is, therefore, of limited relevance for predicting changes in inequality in Russia. 2012-06-26T18:04:15Z 2012-06-26T18:04:15Z 2006-09 http://documents.worldbank.org/curated/en/2006/09/7056839/increasing-inequality-transition-economies-more-come http://hdl.handle.net/10986/9269 English en_US Policy Research Working Paper; No. 4007 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |