Economic Transformation and Income Distribution: Some Evidence From the Baltic Countries
March 1, 1996
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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.
Subject: Expenditure, Income distribution, Income inequality, Labor, National accounts, Personal income, Social assistance spending, Wages
Keywords: Baltics, country, household income, income, income component, income datum, income differential, Income distribution, Income inequality, Personal income, size distribution income, Social assistance spending, Wages, WP
Pages:
24
Volume:
1996
DOI:
Issue:
014
Series:
Working Paper No. 1996/014
Stock No:
WPIEA0141996
ISBN:
9781451843071
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 43, No. 3, September 1996.
