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...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| 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 |
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okr-10986-63482021-04-23T14:02:30Z Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 Milanovic, Branko Ersado, Lire ACCESS TO CREDIT ADVANCED COUNTRIES ANNUAL INFLATION AVERAGE INCOME AVERAGE RATE AVERAGE SHARE BANKING SYSTEM BUSINESS ENVIRONMENT CAPITAL MARKET CHILD ALLOWANCES COMPARATIVE ECONOMICS COMPETITION POLICY CONSUMER PRICE INDEX COUNTRY CHARACTERISTICS COUNTRY DUMMIES COUNTRY DUMMY COUNTRY EFFECTS COUNTRY FIXED EFFECTS CROSS-COUNTRY STUDIES DEMOCRACIES DEMOCRACY DISPOSABLE INCOME DISPOSABLE INCOME INEQUALITY DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES EARNINGS EARNINGS INEQUALITY ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC POLICY ECONOMIC REFORM EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUAL COUNTRIES EXCHANGE RATE EXCHANGE SYSTEM EXPENDITURE EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FOREIGN EXCHANGE FOREIGN TRADE GDP GDP PER CAPITA GINI COEFFICIENT GLOBALIZATION GOVERNMENT EXPENDITURES GOVERNMENT OWNERSHIP GOVERNMENT POLICIES GRADUAL INCREASE GROWTH ACCELERATION GROWTH PROCESS GROWTH RATES HETEROSKEDASTICITY HIGH GROWTH HIGH INFLATION HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS IMPACT OF INEQUALITY INCOME INCOME DECLINE INCOME DISTRIBUTION INCOME GROUP INCOME GROUPS INCOME INEQUALITY INCOME SHARE INCOME SHARES INCOME STUDY INCOMES INCREASED INEQUALITY INCREASING INEQUALITY INEQUALITY INEQUALITY DATA INEQUALITY EFFECT INEQUALITY ESTIMATES INEQUALITY INDEX INEQUALITY OBSERVATIONS INFLATION RATE INTEREST RATE INTERNATIONAL BANK LABOR FORCE LABOR MARKETS LIBERALIZATION LOW INCOME MACROECONOMIC POLICIES MACROECONOMIC STABILIZATION MARKET ECONOMIES MARKET ECONOMY MEAN INCOMES MIDDLE-INCOME COUNTRIES MINIMUM LEVEL NATURAL RESOURCE NATURAL RESOURCES NEGATIVE COEFFICIENTS NEGATIVE EFFECT NEGATIVE GROWTH NEGATIVE IMPACT 0 HYPOTHESIS OBSERVED INCREASE OUTPUT PARTICULAR COUNTRIES PENSIONS POLICY IMPLICATIONS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY PRIVATE SECTOR PRIVATIZATION PUBLIC SECTOR RAPID INCREASE REAL GDP REAL GROWTH REAL GROWTH RATE REAL INCOME REDISTRIBUTION POLICIES SECURITIES SECURITIES MARKETS SIGNIFICANT EFFECT SIGNIFICANT IMPACT SIGNIFICANT NEGATIVE SOCIAL ASSISTANCE SOCIAL TRANSFERS SOFT BUDGET CONSTRAINTS STRUCTURAL CHANGE TELECOMMUNICATIONS TRADE LIBERALIZATION TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSITION ECONOMY UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNION WAGE INEQUALITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD MARKETS 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. 2012-05-24T15:12:55Z 2012-05-24T15:12:55Z 2008-11 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 English Policy Research Working Paper; No. 4780 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ADVANCED COUNTRIES ANNUAL INFLATION AVERAGE INCOME AVERAGE RATE AVERAGE SHARE BANKING SYSTEM BUSINESS ENVIRONMENT CAPITAL MARKET CHILD ALLOWANCES COMPARATIVE ECONOMICS COMPETITION POLICY CONSUMER PRICE INDEX COUNTRY CHARACTERISTICS COUNTRY DUMMIES COUNTRY DUMMY COUNTRY EFFECTS COUNTRY FIXED EFFECTS CROSS-COUNTRY STUDIES DEMOCRACIES DEMOCRACY DISPOSABLE INCOME DISPOSABLE INCOME INEQUALITY DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES EARNINGS EARNINGS INEQUALITY ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC POLICY ECONOMIC REFORM EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUAL COUNTRIES EXCHANGE RATE EXCHANGE SYSTEM EXPENDITURE EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FOREIGN EXCHANGE FOREIGN TRADE GDP GDP PER CAPITA GINI COEFFICIENT GLOBALIZATION GOVERNMENT EXPENDITURES GOVERNMENT OWNERSHIP GOVERNMENT POLICIES GRADUAL INCREASE GROWTH ACCELERATION GROWTH PROCESS GROWTH RATES HETEROSKEDASTICITY HIGH GROWTH HIGH INFLATION HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS IMPACT OF INEQUALITY INCOME INCOME DECLINE INCOME DISTRIBUTION INCOME GROUP INCOME GROUPS INCOME INEQUALITY INCOME SHARE INCOME SHARES INCOME STUDY INCOMES INCREASED INEQUALITY INCREASING INEQUALITY INEQUALITY INEQUALITY DATA INEQUALITY EFFECT INEQUALITY ESTIMATES INEQUALITY INDEX INEQUALITY OBSERVATIONS INFLATION RATE INTEREST RATE INTERNATIONAL BANK LABOR FORCE LABOR MARKETS LIBERALIZATION LOW INCOME MACROECONOMIC POLICIES MACROECONOMIC STABILIZATION MARKET ECONOMIES MARKET ECONOMY MEAN INCOMES MIDDLE-INCOME COUNTRIES MINIMUM LEVEL NATURAL RESOURCE NATURAL RESOURCES NEGATIVE COEFFICIENTS NEGATIVE EFFECT NEGATIVE GROWTH NEGATIVE IMPACT 0 HYPOTHESIS OBSERVED INCREASE OUTPUT PARTICULAR COUNTRIES PENSIONS POLICY IMPLICATIONS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY PRIVATE SECTOR PRIVATIZATION PUBLIC SECTOR RAPID INCREASE REAL GDP REAL GROWTH REAL GROWTH RATE REAL INCOME REDISTRIBUTION POLICIES SECURITIES SECURITIES MARKETS SIGNIFICANT EFFECT SIGNIFICANT IMPACT SIGNIFICANT NEGATIVE SOCIAL ASSISTANCE SOCIAL TRANSFERS SOFT BUDGET CONSTRAINTS STRUCTURAL CHANGE TELECOMMUNICATIONS TRADE LIBERALIZATION TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSITION ECONOMY UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNION WAGE INEQUALITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD MARKETS |
| spellingShingle |
ACCESS TO CREDIT ADVANCED COUNTRIES ANNUAL INFLATION AVERAGE INCOME AVERAGE RATE AVERAGE SHARE BANKING SYSTEM BUSINESS ENVIRONMENT CAPITAL MARKET CHILD ALLOWANCES COMPARATIVE ECONOMICS COMPETITION POLICY CONSUMER PRICE INDEX COUNTRY CHARACTERISTICS COUNTRY DUMMIES COUNTRY DUMMY COUNTRY EFFECTS COUNTRY FIXED EFFECTS CROSS-COUNTRY STUDIES DEMOCRACIES DEMOCRACY DISPOSABLE INCOME DISPOSABLE INCOME INEQUALITY DISTRIBUTION OF INCOME DISTRIBUTIONAL CHANGES EARNINGS EARNINGS INEQUALITY ECONOMETRIC ANALYSIS ECONOMIC GROWTH ECONOMIC ORDER ECONOMIC POLICY ECONOMIC REFORM EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUAL COUNTRIES EXCHANGE RATE EXCHANGE SYSTEM EXPENDITURE EXPLANATORY VARIABLE EXPLANATORY VARIABLES EXPORTS FINANCIAL INSTITUTIONS FINANCIAL LIBERALIZATION FOREIGN EXCHANGE FOREIGN TRADE GDP GDP PER CAPITA GINI COEFFICIENT GLOBALIZATION GOVERNMENT EXPENDITURES GOVERNMENT OWNERSHIP GOVERNMENT POLICIES GRADUAL INCREASE GROWTH ACCELERATION GROWTH PROCESS GROWTH RATES HETEROSKEDASTICITY HIGH GROWTH HIGH INFLATION HOUSEHOLD SURVEY DATA HOUSEHOLD SURVEYS IMPACT OF INEQUALITY INCOME INCOME DECLINE INCOME DISTRIBUTION INCOME GROUP INCOME GROUPS INCOME INEQUALITY INCOME SHARE INCOME SHARES INCOME STUDY INCOMES INCREASED INEQUALITY INCREASING INEQUALITY INEQUALITY INEQUALITY DATA INEQUALITY EFFECT INEQUALITY ESTIMATES INEQUALITY INDEX INEQUALITY OBSERVATIONS INFLATION RATE INTEREST RATE INTERNATIONAL BANK LABOR FORCE LABOR MARKETS LIBERALIZATION LOW INCOME MACROECONOMIC POLICIES MACROECONOMIC STABILIZATION MARKET ECONOMIES MARKET ECONOMY MEAN INCOMES MIDDLE-INCOME COUNTRIES MINIMUM LEVEL NATURAL RESOURCE NATURAL RESOURCES NEGATIVE COEFFICIENTS NEGATIVE EFFECT NEGATIVE GROWTH NEGATIVE IMPACT 0 HYPOTHESIS OBSERVED INCREASE OUTPUT PARTICULAR COUNTRIES PENSIONS POLICY IMPLICATIONS POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY PRIVATE SECTOR PRIVATIZATION PUBLIC SECTOR RAPID INCREASE REAL GDP REAL GROWTH REAL GROWTH RATE REAL INCOME REDISTRIBUTION POLICIES SECURITIES SECURITIES MARKETS SIGNIFICANT EFFECT SIGNIFICANT IMPACT SIGNIFICANT NEGATIVE SOCIAL ASSISTANCE SOCIAL TRANSFERS SOFT BUDGET CONSTRAINTS STRUCTURAL CHANGE TELECOMMUNICATIONS TRADE LIBERALIZATION TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSITION ECONOMY UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE UNION WAGE INEQUALITY WAGES WEALTH WORLD DEVELOPMENT INDICATORS WORLD MARKETS Milanovic, Branko Ersado, Lire Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 |
| relation |
Policy Research Working Paper; No. 4780 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Milanovic, Branko Ersado, Lire |
| author_facet |
Milanovic, Branko Ersado, Lire |
| author_sort |
Milanovic, Branko |
| title |
Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 |
| title_short |
Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 |
| title_full |
Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 |
| title_fullStr |
Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 |
| title_full_unstemmed |
Reform and Inequality During the Transition : An Analysis Using Panel Household Survey Data, 1990-2005 |
| title_sort |
reform and inequality during the transition : an analysis using panel household survey data, 1990-2005 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
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 |
| _version_ |
1764399926979067904 |