Dimitris Mavridis (Paris School of Economics) on "Income Inequality and Incentives - The Natural Experiment of Hungary, 1914-2008"

Speaker:  Dimitris Mavridis - Paris School of Economics
  Wednesday, October 5, 2016 at 12:30 PM Polo Santa Marta, Via Cantarane 24, Stanza 1.59
We construct the first top income share series of a formerly planned economy before, during, and
after socialism in order to exploit the quasi-natural experiment of the absence of markets on the
relative price of skills. We investigate top income shares dynamics and the sources of income at the
upper tail of the income distribution. Within this setup, we study the effect of capital markets and
liberalized wage settings on top income shares. Our estimates show that free capital and labor markets,
as well as wage-setting decentralization played a significant role at increasing income inequality
prior and during the transition to a market economy.

Programme Director
Federico Perali

Publication date
March 1, 2016