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A Note on Income Inequality in East Europe

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  • Frederic Pryor

Abstract

This short essay examines the proposition that the transition process to a capitalist economic system in Eastern and Central European nations has introduced greater income inequality than in long-time capitalist nations at similar stages of development. In the empirical analysis I use comparable inequality data from the Luxembourg Income Study, hold constant a number of general causal determinants of inequality, and show that such inequality in Eastern and Central Europe is significantly less than in nations where capitalism has long held sway.

Suggested Citation

  • Frederic Pryor, 2015. "A Note on Income Inequality in East Europe," LIS Working papers 643, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:643
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    References listed on IDEAS

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    1. António Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Income distribution determinants and public spending efficiency," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 367-389, September.
    2. Timothy Smeeding, 2002. "Globalization, Inequality and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study," LIS Working papers 320, LIS Cross-National Data Center in Luxembourg.
    3. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    4. Milanovic, Branko & Ersado, Lire, 2008. "Reform and Inequality during the Transition: An Analysis Using Panel Household Survey Data, 1990-2005," Policy Research Working Paper Series 4780, The World Bank.
    5. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
    6. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521438827, September.
    7. Milanovic, Branko & Ersado, Lire, 2008. "Reform and inequality during the transition: An analysis using panel household survey data, 1990-2005," MPRA Paper 7459, University Library of Munich, Germany.
    8. Inglehart Ronald & Basañez Miguel & Díez-Madrano Jaime & Halman Loek & Luijkx Ruud, 2004. "Human Beliefs and Values," Books, Fundacion BBVA / BBVA Foundation, edition 0, number 201143, October.
    9. Timothy M. Smeeding, 2002. "Globalization, Inequality, and the Rich Countries of the G-20: Evidence from the Luxembourg Income Study (LIS)," Center for Policy Research Working Papers 48, Center for Policy Research, Maxwell School, Syracuse University.
    10. Luis Angeles, 2010. "An alternative test of Kuznets’ hypothesis," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 463-473, December.
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    More about this item

    Keywords

    income distribution; economic systems;

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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