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Did Inequality Increase in Transition?: An Analysis of the Transition Countries of Eastern Europe and Central Asia

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  • David R. Henderson
  • Robert M. McNab
  • Tamas Rozsas

Abstract

In the first decade that the former socialist countries of Eastern Europe and Central Asia transitioned toward freer markets, measured income inequality increased. Because this contradicted previous models of inequality, researchers linked the increase in inequality to a supposed equality under socialism and to the process of economic and political liberalization. We show, however, that other factors, including hidden inequalities in the socialist era, can explain democratization's resultant increase in measured income inequality.

Suggested Citation

  • David R. Henderson & Robert M. McNab & Tamas Rozsas, 2008. "Did Inequality Increase in Transition?: An Analysis of the Transition Countries of Eastern Europe and Central Asia," Eastern European Economics, Taylor & Francis Journals, vol. 46(2), pages 28-49, March.
    • Handle: RePEc:mes:eaeuec:v:46:y:2008:i:2:p:28-49
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    Citations

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    Cited by:

    1. Rainer Reile & Aleksei Baburin & Tatjana Veideman & Mall Leinsalu, 2020. "Long-term trends in the body mass index and obesity risk in Estonia: an age–period–cohort approach," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 65(6), pages 859-869, July.
    2. Festing, Marion & Sahakiants, Ihar, 2013. "Path-dependent evolution of compensation systems in Central and Eastern Europe: A case study of multinational corporation subsidiaries in the Czech Republic, Poland and Hungary," European Management Journal, Elsevier, vol. 31(4), pages 373-389.
    3. Bukvić, Rajko, 2015. "Неоклассическая Экономическая Парадигма И Экономическая Реальность [Neoclassical Economic Paradigm and Economic Reality]," MPRA Paper 105693, University Library of Munich, Germany, revised 2015.
    4. Ucal, Meltem & Karabulut, Gokhan & Bilgin, Mehmet Huseyin, 2009. "Military Expenditures and Inequality: Empirical Evidence from Israel," MPRA Paper 48643, University Library of Munich, Germany.
    5. David Henderson & Robert M McNab & Tamas Rozsas, 2004. "The Hidden Inequality In Socialism," Development and Comp Systems 0411012, University Library of Munich, Germany.
    6. Muhammad, Shahbaz & Reza, Sherafatian-Jahromi & Muhammad, Nasir Malik, 2012. "Linkages between Defence Spending and Income Inequality in Iran," MPRA Paper 41983, University Library of Munich, Germany, revised 14 Oct 2012.
    7. Bukvić, Rajko, 2015. "Неоклассическая Экономическая Теория И Экономическая Действительность [Neoclassical Economic Theory and Economic Reality]," MPRA Paper 70769, University Library of Munich, Germany, revised 2015.

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