On the dynamics of inequality in the transition

Aghion, Philippe; Commander, Simon

doi:10.1111/1468-0351.00015

Cited by 93 publications

(72 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…On the demand side, a skill biased technical change, adopted also defensively to deal with international competition, should tend the return to education to increase (Aghion and Commander, 1999;Sabirianova, 2003). On the supply side, the high and remarkably increasing share of workers with high levels of human capital in transition countries could have reduced the skill premium if one thinks in static terms 3 .…”

Section: Shifts In Labour Demand and Supply By Skill In The Early Tramentioning

confidence: 99%

See 1 more Smart Citation

Private returns to human capital over transition: A case study of Belarus

Pastore¹,

Verashchagina

2006

Economics of Education Review

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Private Returns to Human Capital over Transition: A Case Study of BelarusFrancesco Pastore Alina Verashchagina The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT Private Returns to Human Capital over Transition: A Case Study of BelarusThe gradualist approach to economic transition in Belarus would contribute to form the a priori expectation that the rate of return to education is low and the earnings profile by work experience flat, like they supposedly were under central-planning. However, the first available estimates of Mincerian earnings equations based on the Belarusian Household Survey on Incomes and Expenditure suggest that the skill payoff was high in 1996, at about 10.1% per year, and stable. The return to one year of work experience is also high at 5%. This result maintains also after controlling for sample selection bias, despite a general reduction in the annual rate of return to education by about 20-30%. Though, it is ambiguous whether the high-skill payoff is the consequence of market forces coming into play or of policy decisions, considering the pervasive role of the state in the process of wage determination.JEL Classification: J31, P52

show abstract

Section: Shifts In Labour Demand and Supply By Skill In The Early Tramentioning

confidence: 99%

“…Orazem and Vodopivec (1997), Aghion and Commander (1999) and Sabirianova (2003) point out three main specific forces. First is the removal of the government's power to set wages, which supposedly prevented the emergence of high returns to education under central planning 4 .…”

Section: Shifts In Labour Demand and Supply By Skill In The Early Tramentioning

confidence: 99%

Private returns to human capital over transition: A case study of Belarus

Pastore¹,

Verashchagina

2006

Economics of Education Review

View full text Add to dashboard Cite

show abstract

“…This view, as summarized in Milanovic (1998) and Aghion and Commander (1999), has been challenged in an important paper by Garner and Terrell (1998) In this paper, we provide new evidence that is relevant for this debate from one of the more successful transition countries--Poland. Using micro data from the Household Budget Surveys (HBS) conducted by the Polish Central Statistical Office (CSO), we examine the evolution of income and consumption distributions in Poland over the period 1985 sample covers the first eight years of the economic transition that began with the so-called "big bang" reform of August 1989 to January 1990.…”

Section: Introductionmentioning

confidence: 83%

Inequality, Transfers and Growth: New Evidence From the Economic Transition in Poland

Prasad¹,

Keane²

2000

IMF Working Papers

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor, (2) internationalization of labor markets, (3) the welfare state and labor markets, (4) labor markets in transition countries, (5) the future of labor, (6) evaluation of labor market policies and projects and (7) general labor economics. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available on the IZA website (www.iza.org) or directly from the author. This paper analyzes the evolution of inequality in Poland during the economic transition that began in 1989-90. Using micro data from the Household Budget Surveys, we find that, after a brief spike in 1989, income and consumption inequality actually declined to below pretransition levels during 1990-92 and then increased gradually, rising only moderately above pre-transition levels by 1997. In sharp contrast, inequality in labor earnings increased markedly and consistently throughout the 1990-97 period. We find that social transfer mechanisms, including pensions, played an important role in mitigating increases in both overall inequality and poverty. We argue that, from a political economy perspective, transfer mechanisms were well-designed to reduce political resistance to market-oriented reforms in the early years of transition, paving the way for rapid growth. Finally, we provide crosscountry evidence from the transition economies that is consistent with our interpretation of the Polish experience and is also consistent with recent work in growth theory which suggests that redistribution that reduces inequality ...

show abstract

“…[4], [11] Studies on citizen role and redistribution of assets and FDI inflows as political factors are covered. [1], [10] Studies figure urbanization, age structure and household structure as demographic drivers for income inequality. [3], [15] Researches on cultural and environmental factors state that such variables lead to poverty rate, which use land concentration, cultural characteristics, and rising shadow economy respectively.…”

Section: Previous Literature and The Modelmentioning

confidence: 99%

A Study on Path Analysis of Determinants of Low-income Households: an evidence from Korea

Ryu¹,

Keum²

2017

IJSWPM

View full text Add to dashboard Cite

Deciding low-income intensifies poverty rate, on July of 2017, the government of Korea has announced to raise minimum wage in order to make change to labor market structure. Income inequality has long been a social issue, and housing income is considered to be major determinant. With sample data in a medium-sized city of Korea, this study investigates causal relationship among parametric variables utilizing path analysis. We find that the quality of job for the households leads to income of the sample data analyzed.

show abstract

On the dynamics of inequality in the transition

Cited by 93 publications

References 8 publications

Private returns to human capital over transition: A case study of Belarus

Private returns to human capital over transition: A case study of Belarus

Inequality, Transfers and Growth: New Evidence From the Economic Transition in Poland

A Study on Path Analysis of Determinants of Low-income Households: an evidence from Korea

Contact Info

Product

Resources

About