Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data

Present levels of income inequality in Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, and Slovenia remain considerably higher than their pre-transition levels, although the relative pace of change over time has varied quite...

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Main Author: Zaidi, Salman
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
GDP
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090113081636
http://hdl.handle.net/10986/4016
id okr-10986-4016
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
AVERAGE INCOME
AVERAGE INCOMES
AVERAGE SHARE
CALCULATIONS
CAPITAL INVESTMENTS
CASH TRANSFERS
CLIENT COUNTRY
CONSUMER
CONSUMER DURABLE
CONTRIBUTION
CROSS-COUNTRY COMPARISONS
CROSS-SECTIONAL DATA
DATA COLLECTION
DATA SET
DATA SETS
DEMOGRAPHIC
DEPENDENT VARIABLE
DIFFERENCES IN INCOME
DISABILITY
DISABILITY BENEFITS
DISADVANTAGED GROUPS
DISPOSABLE INCOME
DISPOSABLE INCOMES
DISTRIBUTION OF INCOMES
DISTRIBUTIONAL OUTCOMES
DIVIDENDS
DURABLE GOODS
EARNINGS
ECONOMIC ACTIVITY
ECONOMIC MANAGEMENT
ECONOMIC PERFORMANCE
EMPLOYMENT STATUS
EXPLANATORY VARIABLES
FAMILY BENEFITS
GDP
GENERAL PUBLIC
GINI COEFFICIENT
GINI INDEX
GOVERNMENT INVOLVEMENT
GROSS INCOME
GROSS INCOMES
HIGH INCOME INEQUALITY
HIGHER INEQUALITY
HOUSEHOLD DEMOGRAPHICS
HOUSEHOLD EXPENDITURES
HOUSEHOLD INCOME
HOUSEHOLD MEMBERS
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEY DATA
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
INCIDENCE ANALYSIS
INCOME
INCOME COMPONENTS
INCOME DIFFERENCES
INCOME DISPARITIES
INCOME DISTRIBUTION
INCOME DISTRIBUTIONS
INCOME GAP
INCOME GROUPS
INCOME INEQUALITY
INCOME LEVELS
INCOME POVERTY
INCOME REDISTRIBUTION
INCOME TAX
INCOME TAXES
INCREASE IN INCOME
INCREASED INEQUALITY
INDIVIDUAL COUNTRIES
INEQUALITY ESTIMATES
INEQUALITY MEASURES
INSURANCE
INVERSE RELATIONSHIP
LABOR FORCE
LABOR INCOME
LABOR MARKET
LABOR MARKET PROGRAMS
LEVEL OF EDUCATION
LIVING STANDARDS
LONGITUDINAL DATA
LOW INCOME
LOW INCOMES
MARKET ECONOMIES
MEMBER COUNTRIES
MIDDLE CLASS
MORTGAGE
NEGATIVE SLOPE
OBSERVED INCREASE
OUTPUT
PER CAPITA INCOME
PERSONAL INCOME
PERSONAL INFORMATION
POLICY IMPLICATIONS
POLICY RESEARCH
POLITICAL PLATFORM
POOR
POOR HOUSEHOLDS
POOR PEOPLE
POPULATION SUB-GROUP
POSSESSION
POVERTY REDUCTION
PRIMARY EDUCATION
PROBABILITIES
PROBABILITY
PUBLIC EXPENDITURES
PUBLIC POLICY
PUBLIC SERVICE DELIVERY
PUBLIC SPENDING
PUBLIC SUPPORT
PUBLIC TRANSFERS
QUESTIONNAIRE
RAPID INFLATION
REDISTRIBUTIVE IMPACT
REGIONAL DIFFERENCES
REGIONAL DUMMIES
REGRESSION ANALYSIS
REGRESSION RESULTS
RELATIVE CONTRIBUTIONS
RETIRED
RURAL
RURAL AREAS
RURAL RESIDENTS
SECOND JOB
SECONDARY EDUCATION
SELF-EMPLOYMENT
SOCIAL ASSISTANCE
SOCIAL EXCLUSION
SOCIAL INSURANCE
SOCIAL PROGRAMS
SOCIAL TRANSFERS
TAX BENEFIT
TAX CODE
TAX RATE
TAX RATES
TAX SYSTEM
TAX SYSTEMS
TRANSITION COUNTRIES
TRANSITION ECONOMIES
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT BENEFITS
UNEMPLOYMENT RATES
WAGE
WAGE INEQUALITY
WELFARE PROGRAMS
WELFARE STATE
WELL-BEING
WORKING AGE
WORKING AGE POPULATION
spellingShingle ACCOUNTING
AVERAGE INCOME
AVERAGE INCOMES
AVERAGE SHARE
CALCULATIONS
CAPITAL INVESTMENTS
CASH TRANSFERS
CLIENT COUNTRY
CONSUMER
CONSUMER DURABLE
CONTRIBUTION
CROSS-COUNTRY COMPARISONS
CROSS-SECTIONAL DATA
DATA COLLECTION
DATA SET
DATA SETS
DEMOGRAPHIC
DEPENDENT VARIABLE
DIFFERENCES IN INCOME
DISABILITY
DISABILITY BENEFITS
DISADVANTAGED GROUPS
DISPOSABLE INCOME
DISPOSABLE INCOMES
DISTRIBUTION OF INCOMES
DISTRIBUTIONAL OUTCOMES
DIVIDENDS
DURABLE GOODS
EARNINGS
ECONOMIC ACTIVITY
ECONOMIC MANAGEMENT
ECONOMIC PERFORMANCE
EMPLOYMENT STATUS
EXPLANATORY VARIABLES
FAMILY BENEFITS
GDP
GENERAL PUBLIC
GINI COEFFICIENT
GINI INDEX
GOVERNMENT INVOLVEMENT
GROSS INCOME
GROSS INCOMES
HIGH INCOME INEQUALITY
HIGHER INEQUALITY
HOUSEHOLD DEMOGRAPHICS
HOUSEHOLD EXPENDITURES
HOUSEHOLD INCOME
HOUSEHOLD MEMBERS
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEY DATA
HOUSEHOLD SURVEYS
HUMAN CAPITAL
HUMAN DEVELOPMENT
INCIDENCE ANALYSIS
INCOME
INCOME COMPONENTS
INCOME DIFFERENCES
INCOME DISPARITIES
INCOME DISTRIBUTION
INCOME DISTRIBUTIONS
INCOME GAP
INCOME GROUPS
INCOME INEQUALITY
INCOME LEVELS
INCOME POVERTY
INCOME REDISTRIBUTION
INCOME TAX
INCOME TAXES
INCREASE IN INCOME
INCREASED INEQUALITY
INDIVIDUAL COUNTRIES
INEQUALITY ESTIMATES
INEQUALITY MEASURES
INSURANCE
INVERSE RELATIONSHIP
LABOR FORCE
LABOR INCOME
LABOR MARKET
LABOR MARKET PROGRAMS
LEVEL OF EDUCATION
LIVING STANDARDS
LONGITUDINAL DATA
LOW INCOME
LOW INCOMES
MARKET ECONOMIES
MEMBER COUNTRIES
MIDDLE CLASS
MORTGAGE
NEGATIVE SLOPE
OBSERVED INCREASE
OUTPUT
PER CAPITA INCOME
PERSONAL INCOME
PERSONAL INFORMATION
POLICY IMPLICATIONS
POLICY RESEARCH
POLITICAL PLATFORM
POOR
POOR HOUSEHOLDS
POOR PEOPLE
POPULATION SUB-GROUP
POSSESSION
POVERTY REDUCTION
PRIMARY EDUCATION
PROBABILITIES
PROBABILITY
PUBLIC EXPENDITURES
PUBLIC POLICY
PUBLIC SERVICE DELIVERY
PUBLIC SPENDING
PUBLIC SUPPORT
PUBLIC TRANSFERS
QUESTIONNAIRE
RAPID INFLATION
REDISTRIBUTIVE IMPACT
REGIONAL DIFFERENCES
REGIONAL DUMMIES
REGRESSION ANALYSIS
REGRESSION RESULTS
RELATIVE CONTRIBUTIONS
RETIRED
RURAL
RURAL AREAS
RURAL RESIDENTS
SECOND JOB
SECONDARY EDUCATION
SELF-EMPLOYMENT
SOCIAL ASSISTANCE
SOCIAL EXCLUSION
SOCIAL INSURANCE
SOCIAL PROGRAMS
SOCIAL TRANSFERS
TAX BENEFIT
TAX CODE
TAX RATE
TAX RATES
TAX SYSTEM
TAX SYSTEMS
TRANSITION COUNTRIES
TRANSITION ECONOMIES
UNEMPLOYED
UNEMPLOYMENT
UNEMPLOYMENT BENEFITS
UNEMPLOYMENT RATES
WAGE
WAGE INEQUALITY
WELFARE PROGRAMS
WELFARE STATE
WELL-BEING
WORKING AGE
WORKING AGE POPULATION
Zaidi, Salman
Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data
geographic_facet Europe and Central Asia
Europe and Central Asia
relation Policy Research working paper ; no. WPS 4815
description Present levels of income inequality in Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, and Slovenia remain considerably higher than their pre-transition levels, although the relative pace of change over time has varied quite a bit across countries. Using data from the 2006 European Union Survey of Income and Living Conditions, this paper finds that prevailing levels of income inequality in these countries continue to be low by international standards, and that this is in large part due to the very high redistributive impact of direct taxes and public transfers. In addition to the instrumental role of tax and transfer policies in redistributing income, the paper highlights the important role played by differences in education levels and labor market participation rates in explaining observed inequalities across people and across different regions (although not in explaining observed differences across countries). The paper includes an analysis of key factors that help explain observed variation across countries in the level of public support for redistribution, including peoples' economic background and relative success in life, whether they perceive poverty to be associated with factors within or outside the control of those it afflicts (for example, laziness/lack of willpower vs. injustice in society).
format Publications & Research :: Policy Research Working Paper
author Zaidi, Salman
author_facet Zaidi, Salman
author_sort Zaidi, Salman
title Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data
title_short Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data
title_full Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data
title_fullStr Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data
title_full_unstemmed Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data
title_sort main drivers of income inequality in central european and baltic countries : some insights from recent household survey data
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090113081636
http://hdl.handle.net/10986/4016
_version_ 1764389513023455232
spelling okr-10986-40162021-04-23T14:02:14Z Main Drivers of Income Inequality in Central European and Baltic Countries : Some Insights from Recent Household Survey Data Zaidi, Salman ACCOUNTING AVERAGE INCOME AVERAGE INCOMES AVERAGE SHARE CALCULATIONS CAPITAL INVESTMENTS CASH TRANSFERS CLIENT COUNTRY CONSUMER CONSUMER DURABLE CONTRIBUTION CROSS-COUNTRY COMPARISONS CROSS-SECTIONAL DATA DATA COLLECTION DATA SET DATA SETS DEMOGRAPHIC DEPENDENT VARIABLE DIFFERENCES IN INCOME DISABILITY DISABILITY BENEFITS DISADVANTAGED GROUPS DISPOSABLE INCOME DISPOSABLE INCOMES DISTRIBUTION OF INCOMES DISTRIBUTIONAL OUTCOMES DIVIDENDS DURABLE GOODS EARNINGS ECONOMIC ACTIVITY ECONOMIC MANAGEMENT ECONOMIC PERFORMANCE EMPLOYMENT STATUS EXPLANATORY VARIABLES FAMILY BENEFITS GDP GENERAL PUBLIC GINI COEFFICIENT GINI INDEX GOVERNMENT INVOLVEMENT GROSS INCOME GROSS INCOMES HIGH INCOME INEQUALITY HIGHER INEQUALITY HOUSEHOLD DEMOGRAPHICS HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT INCIDENCE ANALYSIS INCOME INCOME COMPONENTS INCOME DIFFERENCES INCOME DISPARITIES INCOME DISTRIBUTION INCOME DISTRIBUTIONS INCOME GAP INCOME GROUPS INCOME INEQUALITY INCOME LEVELS INCOME POVERTY INCOME REDISTRIBUTION INCOME TAX INCOME TAXES INCREASE IN INCOME INCREASED INEQUALITY INDIVIDUAL COUNTRIES INEQUALITY ESTIMATES INEQUALITY MEASURES INSURANCE INVERSE RELATIONSHIP LABOR FORCE LABOR INCOME LABOR MARKET LABOR MARKET PROGRAMS LEVEL OF EDUCATION LIVING STANDARDS LONGITUDINAL DATA LOW INCOME LOW INCOMES MARKET ECONOMIES MEMBER COUNTRIES MIDDLE CLASS MORTGAGE NEGATIVE SLOPE OBSERVED INCREASE OUTPUT PER CAPITA INCOME PERSONAL INCOME PERSONAL INFORMATION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL PLATFORM POOR POOR HOUSEHOLDS POOR PEOPLE POPULATION SUB-GROUP POSSESSION POVERTY REDUCTION PRIMARY EDUCATION PROBABILITIES PROBABILITY PUBLIC EXPENDITURES PUBLIC POLICY PUBLIC SERVICE DELIVERY PUBLIC SPENDING PUBLIC SUPPORT PUBLIC TRANSFERS QUESTIONNAIRE RAPID INFLATION REDISTRIBUTIVE IMPACT REGIONAL DIFFERENCES REGIONAL DUMMIES REGRESSION ANALYSIS REGRESSION RESULTS RELATIVE CONTRIBUTIONS RETIRED RURAL RURAL AREAS RURAL RESIDENTS SECOND JOB SECONDARY EDUCATION SELF-EMPLOYMENT SOCIAL ASSISTANCE SOCIAL EXCLUSION SOCIAL INSURANCE SOCIAL PROGRAMS SOCIAL TRANSFERS TAX BENEFIT TAX CODE TAX RATE TAX RATES TAX SYSTEM TAX SYSTEMS TRANSITION COUNTRIES TRANSITION ECONOMIES UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATES WAGE WAGE INEQUALITY WELFARE PROGRAMS WELFARE STATE WELL-BEING WORKING AGE WORKING AGE POPULATION Present levels of income inequality in Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, and Slovenia remain considerably higher than their pre-transition levels, although the relative pace of change over time has varied quite a bit across countries. Using data from the 2006 European Union Survey of Income and Living Conditions, this paper finds that prevailing levels of income inequality in these countries continue to be low by international standards, and that this is in large part due to the very high redistributive impact of direct taxes and public transfers. In addition to the instrumental role of tax and transfer policies in redistributing income, the paper highlights the important role played by differences in education levels and labor market participation rates in explaining observed inequalities across people and across different regions (although not in explaining observed differences across countries). The paper includes an analysis of key factors that help explain observed variation across countries in the level of public support for redistribution, including peoples' economic background and relative success in life, whether they perceive poverty to be associated with factors within or outside the control of those it afflicts (for example, laziness/lack of willpower vs. injustice in society). 2012-03-19T19:08:24Z 2012-03-19T19:08:24Z 2009-01-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090113081636 http://hdl.handle.net/10986/4016 English Policy Research working paper ; no. WPS 4815 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia