Economic Transformation and Income Distribution: Some Evidence From the Baltic Countries

Author/Editor:

Beatrice Weder ; Peter Cornelius

Publication Date:

March 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

A transition from a centrally planned to a market economy implies a massive reallocation of resources requiring realignments in relative prices, which may have important distributional effects. This paper examines the extent to which income differentials have changed in countries where bold reforms have been introduced. Discussing the experience in the Baltic states, it finds that—largely due to a significant increase in the dispersion of earnings—recorded income differentials in these countries have widened markedly and that the redistributive effects of social assistance and tax policies have been only marginal.

Series:

Working Paper No. 1996/014

Subject:

Expenditure Income distribution Income inequality Labor National accounts Personal income Social assistance spending Wages

Notes:

Also published in Staff Papers, Vol. 43, No. 3, September 1996.

English

Publication Date:

March 1, 1996

ISBN/ISSN:

9781451843071/1018-5941

Stock No:

WPIEA0141996

Pages:

24

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