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Employment Polarisation and Inequality in the UK and Hungary

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  • Redmond, Gerry
  • Kattuman, Paul

Abstract

This paper uses household budget survey microdata to explore the growth in household income inequality in Hungary in the period 1987-95, and compares it with inequality in the UK in 1995-96. Decomposition of inequality according to both household characteristics and income sources shows that, while inequality did grow rapidly in Hungary over the early Transition period, several factors prevented its growth to higher levels. One of these factors, the distribution of employment and earnings between households, is explored in some detail. While there was considerable polarisation between households with and without employed members in the UK in 1995-96, this was less of a feature in Hungary, in spite of a massive withdrawal of men and women from the labour market between 1987 and 1995. Rather, a narrowing of the gender pay gap and a continued high level of female participation in employment appears to have ensured that, even as earnings inequality in Hungary increased to the extent that it surpassed earnings inequality in the UK, the distribution of household earnings, and the distribution of household incomes, remained more equal in Hungary. Copyright 2001 by Oxford University Press.

Suggested Citation

  • Redmond, Gerry & Kattuman, Paul, 2001. "Employment Polarisation and Inequality in the UK and Hungary," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(4), pages 467-480, July.
    • Handle: RePEc:oup:cambje:v:25:y:2001:i:4:p:467-80
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    Cited by:

    1. Mehmet Balcilar & Edmond Berisha & Oğuzhan Çepni & Rangan Gupta, 2022. "The predictive power of the term spread on inequality in the United Kingdom: An empirical analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1979-1988, April.
    2. Zsuzsa Kapitany & Gyorgy Molnar, 2002. "Inequality and mobility analysis by the Hungarian Rotation Panel, 1993-98," CERS-IE WORKING PAPERS 0204, Institute of Economics, Centre for Economic and Regional Studies.
    3. Giuseppina Malerba & Marta Spreafico, 2013. "Income inequality in the European Union: evidence from a panel analysis," DISCE - Quaderni del Dipartimento di Politica Economica ispe0065, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    4. Jirí Vecerník, 2010. "Earnings Disparities and Income Inequality in CEE Countries: An Analysis of Development and Relationships," LIS Working papers 540, LIS Cross-National Data Center in Luxembourg.
    5. Stephen Hynes & Cathal O’Donoghue, 2005. "Trends in Farm Income Mobility and Inequality in Ireland," Working Papers 0505, Rural Economy and Development Programme,Teagasc.
    6. Molnár, György & Kapitány, Zsuzsa, 2002. "Egyenlőtlenség és mobilitás a magyar háztartások jövedelmében, kiadásaiban és tartós fogyasztási cikkeinek állományában [Inequality and mobility in the income, expenditures and consumer-durable sto," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1015-1041.
    7. Claire Ravel, 2007. "La polarisation de l'emploi au sein des ménages de 1975 à 2002," Économie et Statistique, Programme National Persée, vol. 402(1), pages 3-23.
    8. Rebecca Jean Emigh & Cynthia Feliciano & Corey O’Malley & David Cook-Martín, 2018. "The Effect of State Transfers on Poverty in Post-Socialist Eastern Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 545-574, July.
    9. Rafael De Hoyos, 2012. "Accounting for Mexican Income Inequality During the 1990s," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 103-125, November.
    10. Galasi, Péter & Nagy, Gyula, 2008. "Jövedelmek és munkanélküli-ellátások [Targeting unemployment benefits in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 473-502.

    More about this item

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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