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Consumption and Income Inequality in Poland During the Economic Transition

Author

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  • Mr. Eswar S Prasad
  • Mr. Michael P. Keane

Abstract

This paper challenges the conventional wisdom that income inequality in Poland increased substantially following the economic transition in 1989–90. The results, based on micro data from the 1985–92 Household Budget Surveys, indicate that overall income inequality increased during the initial stages of the transition but then declined to pre-transition levels. Consumption distributions reveal a similar pattern. However, earnings inequality did increase markedly after the transition and the relative well-being of different socio-economic groups was altered. Absolute poverty levels increased during the transition, but this increase is attributable to declines in mean income and consumption rather than to changes in inequality.

Suggested Citation

  • Mr. Eswar S Prasad & Mr. Michael P. Keane, 1999. "Consumption and Income Inequality in Poland During the Economic Transition," IMF Working Papers 1999/014, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1999/014
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    Cited by:

    1. Kattuman, Paul & Redmond, Gerry, 2001. "Income Inequality in Early Transition: The Case of Hungary 1987-1996," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 40-65, March.
    2. Michael P. Keane & Eswar S. Prasad, 2002. "Inequality, Transfers, And Growth: New Evidence From The Economic Transition In Poland," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 324-341, May.
    3. Anderson, Kathryn & Pomfret, Richard, 2000. "Living Standards during Transition to a Market Economy: The Kyrgyz Republic in 1993 and 1996," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 502-523, September.
    4. Okrasa, Wlodzimierz, 1999. "Who avoids and who escapes from poverty during transition? - evidence from Polish panel data, 1993-96," Policy Research Working Paper Series 2218, The World Bank.
    5. Okrasa,Wlodzimierz, 1999. "The dynamics of poverty and the effectiveness of Poland's safety net (1993-96)," Policy Research Working Paper Series 2221, The World Bank.
    6. Koziel, Slawomir & Welon, Zygmunt & Bielicki, Tadeusz & Szklarska, Alicja & Ulijaszek, Stanley, 2004. "The effect of the economic transition on the body mass index of conscripts in Poland," Economics & Human Biology, Elsevier, vol. 2(1), pages 97-106, March.
    7. Klepacki, Bogdan & Perkowska, Aleksandra, 2020. "Organization Of Food Supply Chains In Dispersed Production On The Example Of The Vegetable Sector In Poland," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(1).
    8. Ran Abramitzky & Travis Baseler & Isabelle Sin, 2022. "How does persecution affect who migrates? We analyze migrants’ self-selection out of the USSR and its satellite states before and after the collapse of Communism using census microdata from the three ," Working Papers 22_07, Motu Economic and Public Policy Research.
    9. Ulijaszek, Stanley J. & Koziel, Slawomir, 2007. "Nutrition transition and dietary energy availability in Eastern Europe after the collapse of communism," Economics & Human Biology, Elsevier, vol. 5(3), pages 359-369, December.

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