Title Income inequality and redistribution in Lithuania: the role of policy, labor market, income, and demographics /
Authors Černiauskas, Nerijus ; Sologon, Denisa M ; O’Donoghue, Cathal ; Tarasonis, Linas
DOI 10.1111/roiw.12546
Full Text Download
Is Part of Review of income and wealth: Special Issue: Experiences and Challenges in Measuring Income and Wealth in CIS Countries and Eastern Europe Based on IARIW‐HSE Conference, Moscow, 17–18 September, 2019.. Hoboken : Wiley. 2022, vol. 68, iss. S1, p. S131-S166.. ISSN 0034-6586. eISSN 1475-4991
Keywords [eng] income inequality ; redistribution ; decompositions ; microsimulation ; tax-benefit policies
Abstract [eng] We model the household disposable income distribution in Lithuania and explore the drivers of the increase in income inequality between 2007 and 2015. We quantify the contributions of four factors to changes in the disposable income distribution: (i) demographics; (ii) labor market structure; (iii) returns and prices; and (iv) tax–benefit system. Results show that the effects of the factors were substantial and reflected heterogeneous developments over two subperiods: changes in the tax and benefit system cushioned a rapid rise in market income inequality because of the global financial crisis during 2007–2011, but failed to do so during the subsequent years of economic expansion, when rising returns in the labor and capital markets significantly increased disposable income inequality. We also find that declining marriage rates contributed to the increase in income inequality in Lithuania.
Published Hoboken : Wiley
Type Journal article
Language English
Publication date 2022
CC license CC license description