Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005
Using for the first time household survey data from 26 post-Communist countries, covering the period 1990-2005, this paper examines correlates of unprecedented increases in inequality registered by most of the economies. The analysis shows, after c...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/11/10021497/reform-inequality-during-transition-analysis-using-panel-household-survey-data-1990-2005 http://hdl.handle.net/10986/6348 |
| Summary: | Using for the first time household
survey data from 26 post-Communist countries, covering the
period 1990-2005, this paper examines correlates of
unprecedented increases in inequality registered by most of
the economies. The analysis shows, after controlling for
country fixed effects and type of survey used, that economic
reform is strongly negatively associated with the income
share of the bottom decile, and positively with the income
shares of the top two deciles. However, breaking economic
reform into its component parts, the picture is more
nuanced. Large-scale privatization and infrastructure reform
(mostly consisting of privatization and higher fees) are
responsible for the pro-inequality effect; small-scale
privatization tends to raise the income shares of the bottom
deciles. Acceleration in growth is also pro-rich. But
democratization is strongly pro-poor, as is lower inflation.
Somewhat surprisingly, the analysis finds no evidence that
greater government spending as share of gross domestic
income reduces inequality. |
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