A Note On Income Inequality In East And Central Europe

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Comparative Economic Studies


This paper examines the proposition that the transition process to a capitalist economic system in Eastern and Central European nations has introduced greater income inequality than in long-time capitalist nations at similar stages of development. In the empirical analysis, I use comparable inequality data from the Luxembourg Income Study, hold constant a number of general causal determinants of inequality, and show that such inequality in Eastern and Central Europe is significantly less than in nations where capitalism has long held sway.