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

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  • Bukowski, Pawel
  • Novokmet, Filip
Abstract
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.

Suggested Citation

  • Bukowski, Pawel & Novokmet, Filip, 2021. "Between communism and capitalism: long-term inequality in Poland, 1892–2015," LSE Research Online Documents on Economics 110221, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:110221
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    5. Bukowski, Pawel & Chrostek, Pawel & Novokmet, Filip & Skawinski, Marek, 2023. "Income inequality in the 21st century Poland," LSE Research Online Documents on Economics 121282, London School of Economics and Political Science, LSE Library.
    6. Wroński, Marcin, 2023. "The full distribution of adult height in Poland: Cohorts born between 1920 and 1996. The biological cost of the economic transition," Economics & Human Biology, Elsevier, vol. 50(C).
    7. Pawel Bukowski & Pawel Chrostek & Filip Novokmet & Marek Skawinski, 2023. "Income inequality in the 21st century Poland," CEP Discussion Papers dp1966, Centre for Economic Performance, LSE.
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    11. Marcin Wroński, 2023. "Income distribution in Warsaw in the 1830s," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 581-605.
    12. Michal Brzezinski & Katarzyna Salach, 2022. "Determinants of inequality in transition countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 496-496, June.
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    More about this item

    Keywords

    income inequality; transformation; Poland; 724363; 340831;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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