Recent trends in income inequalities in Hungary using administrative data

András Svraka

Taxation Working Papers from Ministry of Finance, Department of Tax Policy and International Taxation

Abstract: This paper uses 2009--19 income tax data to investigate trends in Hungarian market income inequalities. Wage inequality decreased, total inequality increased but these changes differ across the income distribution. Income share of the bottom 40% decreased slightly due an inflow of marginally attached workers. Wages above this threshold -- corresponding to full time employment -- significantly flattened, including in the top 1%, while total income's share remained mostly unchanged. Similar patterns hold within groups for gender, age, and regions but between group inequality rose for age and decreased for regions due to changes in taxpayer population. Growth was broadly shared for non marginally attached, although in the top 0.1% all growth came from capital income. Persistence of income during this period was low in the bottom half of the income distribution, suggesting an increased inequality in this segment might not lead to higher inequality in the long run.

JEL-codes: D31 J11 (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-isf and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:auo:moftwp:8

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