Firms and Wage Inequality in Central and Eastern Europe

We construct the first consistent series on the long-term distribution of income in Poland by combining tax, household survey and national accounts data. We document a U-shaped evolution of inequalities from the end of the nineteenth century until today: (1) inequality was high before WWII; (2) abruptly fell after the introduction of communism in 1947 and stagnated at low levels during the whole communist period; (3) experienced a sharp rise with the return to capitalism in 1989. We find that official survey-based measures strongly under-estimate the rise in inequality since 1989. Our results highlight the prominent role of capital income in driving the U-shaped evolution of top income shares. The unique inequality history of Poland speaks to the central role of institutions and policies in shaping inequality in the long run.

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Firms and Wage Inequality in Central and Eastern Europe

Cited by 2 publications

References 27 publications

Wealth distribution and accounting for changes in wealth inequality: empirical evidence from India, 1991–2012

Wealth distribution and accounting for changes in wealth inequality: empirical evidence from India, 1991–2012

Between communism and capitalism: long-term inequality in Poland, 1892–2015

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