49 Pages Posted: 10 Feb 2006
Date Written: January 1999
This paper challenges the conventional wisdom that income inequality in Poland increased substantially following the economic transition in 1989-90. The results, based on micro data from the 1985-92 Household Budget Surveys, indicate that overall income inequality increased during the initial stages of the transition but then declined to pre-transition levels. Consumption distributions reveal a similar pattern. However, earnings inequality did increase markedly after the transition and the relative well-being of different socio-economic groups was altered. Absolute poverty levels increased during the transition, but this increase is attributable to declines in mean income and consumption rather than to changes in inequality.
JEL Classification: D31, J31, O15
Suggested Citation: Suggested Citation
Keane, Michael P. and Prasad, Eswar S., Consumption and Income Inequality in Poland During the Economic Transition (January 1999). IMF Working Paper, Vol. , pp. 1-49, 1999. Available at SSRN: https://ssrn.com/abstract=880541
By Erzo Luttmer
By Jan Svejnar