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Factors Contributing to Income and Wage Inequality: Comparative Evidence from Croatia, Serbia and Slovenia

Gorana Krstić

Eastern European Economics, 2021, vol. 59, issue 5, 423-448

Abstract: We examine sources of income and wage inequality in three transition countries. Our results reveal that much lower inequality of disposable income in Slovenia than in Croatia and Serbia can mainly be explained by more equally distributed net wages across households. This is partly attributed to the lower fraction of households with very low work intensity in Slovenia than in the other two countries, combined with a higher redistributive capacity of taxes and social transfers. We find that educational qualifications and both quantity and quality of work, play an important role in explaining differences in wage inequality in all three countries.

Date: 2021
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DOI: 10.1080/00128775.2021.1949352

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Handle: RePEc:mes:eaeuec:v:59:y:2021:i:5:p:423-448