|Abstract||For transition economies, income inequality is positively correlated with the share of output produced in the informal economy. Increases in income inequality also tend to be correlated with increases in the share of output produced in the unofficial economy. These hypotheses are supported significantly by empirical data for sixteen transition economies between 1987 to 1989 and 1993 to 1994. Various causal mechanisms may operate in both directions, an increasingly large informal economy causing more inequality due to falling tax revenues and weakened social safety nets, and increasing inequality causing more informal activity as social solidarity and trust decline.|
|Keywords||No keywords specified (fix it)|
No categories specified
(categorize this paper)
|Through your library||Only published papers are available at libraries|
Similar books and articles
J. Barkley Rosser, Failure of the Washington Consensus On Inequality and the Underground Economy in the Transition Economies.
J. Barkley Rosser, Complex Dynamics of Macroeconomic Collapse and Its Aftermath in Transition Economies.
Barkley Rosser, A Global Perspective on the Non-Observed Economy, Inequality, Corruption, and Social Capital.
J. Barkley Rosser, Multiple Unofficial Economy Equilibria and Income Distribution Dynamics in Systemic Transition.
Added to index2009-01-28
Total downloads5 ( #169,830 of 722,698 )
Recent downloads (6 months)0
How can I increase my downloads?