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Top incomes in Croatia and Slovenia, from 1960s until today

Author

Listed:
  • Nataša Kump

    (Institute for Economic Research - Ljubljana)

  • Filip Novokmet

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

The income tax data are used to show that the transition to the market economy has led to a moderate increase in income inequality in Croatia and Slovenia. Inequality increased in the 1990s and stabilized afterwards, with the increase in inequality being mainly driven by the rising shares of top income groups. This development is explained by the ‘gradualist' transition course. In both Slovenia and Croatia, the slow privatization and the large public sector have contributed to the emergence of labour market institutions that procured low inequality social equilibrium. Further, the substantial importance of the state ownership of the corporate sector in Slovenia and the foreign and state ownership in Croatia has made the concentration of private capital income less pronounced at the top of the income distribution. Finally, new inequality series for Croatia and Slovenia are a valuable contribution in assessing the role and showing the importance of policies and institutions in shaping inequality.

Suggested Citation

  • Nataša Kump & Filip Novokmet, 2018. "Top incomes in Croatia and Slovenia, from 1960s until today," PSE Working Papers hal-02878175, HAL.
  • Handle: RePEc:hal:psewpa:hal-02878175
    Note: View the original document on HAL open archive server: https://pse.hal.science/hal-02878175
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    References listed on IDEAS

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    1. Thomas Blanchet & Lucas Chancel & Amory Gethin, 2022. "Why Is Europe More Equal than the United States?," American Economic Journal: Applied Economics, American Economic Association, vol. 14(4), pages 480-518, October.

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