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

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.

Supplementary information

The online version contains supplementary material available at 10.1007/s10887-021-09190-1.

SUBMITTER: Bukowski P

PROVIDER: S-EPMC8550671 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature

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Publications

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

Bukowski Paweł P Novokmet Filip F

Journal of economic growth (Boston, Mass.) 20210602 2

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 of ...[more]

PMID: 34776755

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Project description:BackgroundAustralians born in 2012 can expect to live about 33 years longer than those born 100 years earlier. However, only seven of these additional years are spent in the workforce. Longer life expectancy has driven policies to extend working life and increase retirement age; the current Australian policy, which has increased the eligibility for the pension from 65 to 67 by 2023, assumes that an improvement in longevity corresponds with an improvement in healthy life expectancy. However, there is mixed evidence of health trends in Australia over the past two decades. Although some health outcomes are improving among older age groups, many are either stable or deteriorating. This raises a question of how health trends intersect with policy for older Australians aged from 50 to 70. This paper considers the interplay between older workers' health and workforce participation rates over the past 15 years when extended workforce participation has been actively encouraged.MethodsWe compared health and economic outcomes of the older people in following years with the base year (start of the study period), adjusting for some key socio-economic characteristics such as age, sex, ethnicity, education and equivalized household income by applying the Random effects estimator with maximum likelihood estimation technique.ResultsWe find that regardless of increasing longevity, the health of older adults aged between 50 and 70 has slightly deteriorated. In addition, health gaps between those who were working into their older age and those who were not have widened over the 15-year period. Finally, we find that widening health gaps linked to workforce participation are also accompanied by rising economic inequality in incomes, financial assets and superannuation. With the exception of a small group of healthy and very wealthy retirees, the majority of the older Australians who were not working had low incomes, assets, superannuation, and poor health.ConclusionsThe widening economic and health gap within older population over time indicates a clear and urgent need to add policy actions on income and health, to those that seek to increase workforce participation among older adults.

Dataset Information

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

Supplementary information

Publications

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

Similar Datasets

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