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Income Inequality In Transition Economies: A Comparative Analysis Of Croatia, Serbia And Slovenia

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  • Jelena Žarković Rakić
  • Gorana Krstić
  • Nermin Oruč
  • Will Bartlett

Abstract

This paper investigates the relationship between income inequal-ity and different welfare state trajectories that three countries of the former Yugo-slavia “south of the Alps” have taken over the three decades since the breakup of the country in 1990. It is remarkable that three countries emerging from a common (social-ist) system have experienced diametrically opposing outcomes regarding inequality. Slovenia has one of the lowest levels of in-come inequality in Europe, Croatia an av-erage level of inequality, and Serbia one of the highest levels. The paper first examines the extent and nature of income inequality in the three countries before examining the determining causes of inequality, rooted in the evaluation of labour markets, edu-cation systems, and tax-benefit systems. It concludes that the divergent transition paths have created the different inequality outcomes observed in the three countries.

Suggested Citation

  • Jelena Žarković Rakić & Gorana Krstić & Nermin Oruč & Will Bartlett, 2019. "Income Inequality In Transition Economies: A Comparative Analysis Of Croatia, Serbia And Slovenia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 64(223), pages 39-60, October –.
    • Handle: RePEc:beo:journl:v:64:y:2019:i:223:p:39-60
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    References listed on IDEAS

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    1. Mitra, Pradeep & Yemtsov, Ruslan, 2006. "Increasing inequality in transition economies : is there more to come?," Policy Research Working Paper Series 4007, The World Bank.
    2. Hoffman, Saul D. & Bićanić, Ivo & Vukoja, Oriana, 2012. "Wage inequality and the labor market impact of economic transformation: Croatia, 1970–2008," Economic Systems, Elsevier, vol. 36(2), pages 206-217.
    3. Tjaša Bartolj & Aleš AhCan & Aljoša Feldin & Sašo Polanec, 2013. "Evolution of private returns to tertiary education during transition: evidence from Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 25(3), pages 407-424, September.
    4. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," The World Bank Economic Review, World Bank, vol. 9(2), pages 201-230, May.
    5. Gorana Krstić & Peter Sanfey, 2011. "Earnings inequality and the informal economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(1), pages 179-199, January.
    6. Will Bartlett, 2013. "The Political Economy of Welfare Reform in the Western Balkans," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Caterina Ruggeri Laderchi & Sara Savastano (ed.), Poverty and Exclusion in the Western Balkans, edition 127, chapter 0, pages 245-259, Springer.
    7. Mitja ÄŒok & Ivica Urban & Miroslav VerbiÄ, 2013. "Income Redistribution through Taxes and Social Benefits: The Case of Slovenia and Croatia," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(5), pages 667-686, September.
    8. Gorana Krstić, 2016. "Why Income Inequality Is So High In Serbia: Empirical Evidence And A Measurement Of The Key Factors," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 61(210), pages 23-46, July - Se.
    9. Caterina Ruggeri Laderchi & Sara Savastano (ed.), 2013. "Poverty and Exclusion in the Western Balkans," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, edition 127, number 978-1-4614-4945-4, July.
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    Cited by:

    1. Mihail Arandarenko & Dušan Pavlović, 2023. "Egalitarianism And Redistributive Reform In Serbia After 2000," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 68(237), pages 7-36, April – J.
    2. Mladen Stamenković, 2023. "Where Did All The Papers Go? A Bibliometric Overview Of Publications In Economics From Serbia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 68(236), pages 29-50, January –.

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    More about this item

    Keywords

    Income inequality; Welfare state; Labour market; Education systems; Social protection;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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