A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics During the Transition

Posted: 14 Nov 1998

See all articles by Thesia I. Garner

Thesia I. Garner

Bureau of Labor Statistics

Katherine Terrell

Stephen M. Ross School of Business at the University of Michigan; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Gerald R. Ford School of Public Policy

Date Written: June 1998

Abstract

Disposable income inequality, as measured by the Gini coefficient and using Family Budget Survey data, increased very little, and by a similar amount, from 1989-93 in the Czech Republic and Slovakia. This surprising result is examined with an analysis of changes in the channels of redistribution and a Gini decomposition. We find that the sizeable increase in overall inequality due to changes in the wage earnings component is mitigated by changes in the tax and transfer components in both republics. As for the relative effects of government policies, changes in the transfer component contributed more than changes in the tax component to lowering the growth of inequality in the Czech Republic, while the reverse was true for Slovakia.

JEL Classification: D10,D31,D63,H24,P30,P52

Suggested Citation

Garner, Thesia I. and Terrell, Katherine, A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics During the Transition (June 1998). Available at SSRN: https://ssrn.com/abstract=137205

Thesia I. Garner (Contact Author)

Bureau of Labor Statistics ( email )

2 Massachusetts Avenue, NE
Washington, DC 20212
United States

Katherine Terrell

Stephen M. Ross School of Business at the University of Michigan ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Gerald R. Ford School of Public Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

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