Economic Transformation and Income Distribution: Some Evidence From the Baltic Countries
Summary:
A transition from a centrally planned to a market economy implies a massive reallocation of resources requiring realignments in relative prices, which may have important distributional effects. This paper examines the extent to which income differentials have changed in countries where bold reforms have been introduced. Discussing the experience in the Baltic states, it finds that—largely due to a significant increase in the dispersion of earnings—recorded income differentials in these countries have widened markedly and that the redistributive effects of social assistance and tax policies have been only marginal.
Series:
Working Paper No. 1996/014
Subject:
Expenditure Income distribution Income inequality Labor National accounts Personal income Social assistance spending Wages
Notes:
Also published in Staff Papers, Vol. 43, No. 3, September 1996.
English
Publication Date:
March 1, 1996
ISBN/ISSN:
9781451843071/1018-5941
Stock No:
WPIEA0141996
Pages:
24
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