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Driving factors behind the changes in income distribution in the Baltics: income, policy, demography

Author

Listed:
  • Jekaterina Navicke

    (Vilniaus Universitetas)

Abstract
This paper aims at disentangling factors behind the changes in income inequality and relative poverty in the Baltics. The evaluation of the income, policy and demographic effects was based on counterfactual scenarios constructed using tax-benefit microsimulation and re-weighting techniques. Decomposition showed that income and policy effects were dominant for changes in inequality and relative poverty. The policy effects were inequality- and poverty-reducing before the crisis and after the EU accession as a whole. The income effects for the same periods were inequality- and poverty-increasing. Despite rapid demographic changes, the demographic effect on income inequality and relative poverty was marginal.

Suggested Citation

  • Jekaterina Navicke, 2020. "Driving factors behind the changes in income distribution in the Baltics: income, policy, demography," GRAPE Working Papers 44, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:44
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    File URL: http://grape.org.pl/WP/44_Navicke_website.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    income inequality; poverty; demographic change; policy reform; Baltics;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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