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Changing Inequalities and Societal Impacts in Rich CountriesThirty Countries' Experiences$
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Brian Nolan, Wiemer Salverda, Daniele Checchi, Ive Marx, Abigail McKnight, István György Tóth, and Herman G. van de Werfhorst

Print publication date: 2014

Print ISBN-13: 9780199687428

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199687428.001.0001

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Between Economic Growth and Social Justice

Between Economic Growth and Social Justice

Different Inequality Dynamics in the Baltic States

(p.96) Chapter 5 Between Economic Growth and Social Justice
Changing Inequalities and Societal Impacts in Rich Countries

Jaan Masso

Kerly Espenberg

Anu Masso

Inta Mieriņa

Kaia Philips

Oxford University Press

Developments in income inequality in the Baltic States have been greatly influenced by the enormous social and economic changes occurring during transition to market economy and the dynamic macroeconomic environment thereafter. Despite their similar macroeconomic background and institutions, inequality has evolved differently in the Baltic States due to different speed of reforms and differences in labour market developments. Observed patterns of income inequality are linked to social outcomes, such as low fertility rates, low self-perceived health, and restricted access to education for some population groups. To a certain extent, changes in income inequality could also explain low political trust and participation. Given the characteristics of the taxation system, social protection, and education, the governments of the Baltic States need to pay serious attention to the causes and consequences of income inequality.

Keywords:   strong inequality growth, transition, speed of reforms, access to education, fertility, Estonia, Latvia, Lithuania, social impacts, poverty, taxation

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