Institutional determinants of inequality in chosen post-socialist countries: the role of political freedom

Sławomir Kuźmar, Dawid Piątek

DOI: http://dx.doi.org/10.12775/EiP.2019.021

Abstract


Motivation: economic literature indicates that differences in the inequality levels among modern countries can be attributed to many factors or processes such as: economic performance, natural resources endowments, demographical structure or institutional framework. It seems to be important to emphasize that in the case of post-socialist countries where many predetermined trajectories of inequalities were adopted policies and institutions played an important role in shaping inequality.

Aim: in this context the question about the role of political freedom — as one of the key aspects of institutional framework — for the levels of inequality in these countries seems to be especially important. The aim of this paper is to evaluate the role of different political institutions adopted in post-socialist countries for the levels of income inequalities observed among them.

Results: the obtained results indicate that the post-socialist countries which managed to create more inclusive political institutions experience lower inequalities in the distribution of disposable income.


Keywords


political freedom; post-socialist countries; inequality

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