Consumption and Income Inequality in Poland During the Economic Transition

Author/Editor:

Eswar S Prasad ; Michael P. Keane

Publication Date:

January 1, 1999

Electronic Access:

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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:

This paper challenges the conventional wisdom that income inequality in Poland increased substantially following the economic transition in 1989–90. The results, based on micro data from the 1985–92 Household Budget Surveys, indicate that overall income inequality increased during the initial stages of the transition but then declined to pre-transition levels. Consumption distributions reveal a similar pattern. However, earnings inequality did increase markedly after the transition and the relative well-being of different socio-economic groups was altered. Absolute poverty levels increased during the transition, but this increase is attributable to declines in mean income and consumption rather than to changes in inequality.

Series:

Working Paper No. 99/14

Subject:

English

Publication Date:

January 1, 1999

ISBN/ISSN:

9781451843101/1018-5941

Stock No:

WPIEA0141999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

49

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