Inequality in Belarus from 1995 to 2007
Inequality in Belarus from 1995 to 2007

Author(s): Maksim Yemelyanau
Subject(s): Social differentiation, Socio-Economic Research
Published by: BEROC Belarusian Economic Research and Outreach Center
Keywords: Belarus; Ukraine; transition; income inequality; expenditure inequality; social security; DiNardo-Fortin-Lemieux; counterfactual kernel densities; D31; D63; H55; O15;
Summary/Abstract: Income and consumption inequality increased in all transition economies, albeit to very different levels. The existing literature suggests that countries that were slow to undertake pro-market reforms experienced the largest increases in inequality, with the notable exception of Belarus, one of the least reformed ex-Soviet republics, that nevertheless has inequality comparable to the most advanced and least unequal transition countries of Central Europe. This paper studies the evolution of inequality in Belarus in 1995-2007, decomposes inequality by sources of income, and provides a comparison of Belarus and Ukraine, which suggests that the large difference in inequality is due to different income policies of the two countries: Belarus not only avoided mass privatization, but also kept many of the old-style Soviet social security features.

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