A Demographic Analysis of Income Distribution in Estonia&ast

Lisa Wilder, Mary Ellen Benedict and Marie Viies
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Lisa Wilder: Bowling Green State University
Marie Viies: Institute of Economics

Comparative Economic Studies, 1999, vol. 41, issue 1, 96-113

Abstract: This paper identifies the head of household demographic characteristics associated with the Estonian distribution of income. Using measures of income inequality and regression analysis on 1995 household data, we examine how household income is distributed by the age, gender, race, and education level of the heads of household. The Gini coefficient estimates indicate that the household incomes associated with female and elderly heads have an equalizing effect. Households headed by younger males or those who are educated contribute to greater income disparity. The regression analysis confirms these results and suggests that social transfers for households headed by women, the disabled, and the elderly, have an equalizing effect on the income distribution. We also find that farm households appear to lag far behind their urban counterparts in earnings and income.

Date: 1999
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