Presentation is loading. Please wait.

Presentation is loading. Please wait.

Gini WP3 WS, Amsterdam, Oct 22-23, 2010 István György Tóth Effects of the crisis on the income distribution in Hungary (some initial results) Data From.

Similar presentations


Presentation on theme: "Gini WP3 WS, Amsterdam, Oct 22-23, 2010 István György Tóth Effects of the crisis on the income distribution in Hungary (some initial results) Data From."— Presentation transcript:

1 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 István György Tóth Effects of the crisis on the income distribution in Hungary (some initial results) Data From the Tárki Household Monitor survey

2 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 The context of the crisis in HU The crisis found a country with an already large debt service The country just passed a wave of budgetary adjustments (austerity measures) before the crisis Hu is a small and very open economy (multinationals producing a very large part of GDP) Among households, a large debt is taken in foreign currencies – large exposure to exc h ange rate volatility..

3 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Social policy measures affecting the shape of the income distribution in … Before Summer 2006 : Public sector wage rises Pension increases (indexation, 13th month pension) Redirecting family support to lower income groups (abolishing family tax allowances, raising family allowances) Other taxes: decrease of VAT rates After Summer 2006: Social insurance contributions: extension, increase PIT, EVA: special solidarity taxes, increase of top rates Other taxes: VAT, duties Layoffs in public sector … has gone in the same direction. First: improvements for the lower middle classes, then worsening for upper middle classes

4 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Gross and net real earnings Note same quarter of the previous year=100 Major economic indicators, Hungary, GDP growth %,Inflation, %, HHold consumption

5 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 The data series CSO Income Surveys (- 1987) Hungarian Household Panel ( ) TÁRKI Household Monitor (1998-)

6 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Themes of the 2009 Tárki Household Monitor Major research questions: –Income distribution, poverty, –Labour market, –social stratification and inequalities, –Social and political attitudes. Sample: N= 2048 households, N= 3670 persons. Questionnaires: hhold and personal (16+ respondents). Field: February-March

7 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Estimates of various inequality measures and their confidence intervals between 1987 and 2009 (person ekvivalent incomes P90/P10S10/S1 Gini

8 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 *based on st err, 95% conf int Well off (med 200%+) Upper middle (med %) Middle (med %) Lower middle (med50-80%) Poor (-med50%) total Well off (med 200%+) Upper middle (med %) Middle (med %) Lower middle (med50-80%) Poor (-med50%) % distribution 000 persons Upper lower Poverty estimates, 000 persons con. interval Total population, 000 persons Estimates for % of people and for 000 persons falling within the various median% brackets

9 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Share of per capita personal income deciles from total HH disposable incomes between 1962 and 2009 Source: 1962–1987: KSH income surveys, Atkinson–Micklewright [1992] Table HI1.; 1992–1996: HHP waves I–VI., 2000–2009: Tárki Household Monitor.

10 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Inflation (14%) Average income growth (7%) No change level Change in average incomes of various income deciles (person equivalent* income) between 2007 and 2009 * e=0.73

11 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Polarization and shrinkage of the middle class between 1987 and 2005: distribution of persons in the 1987 per capita income deciles, based on current incomes deflated to 1987, percent Note: 1987 decile cutpoints are deflated median growth indices. Source: 1987: CSO Income distribution survey, 1996: HHP, 2003, 2005: Tárki Household Monitor.

12 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Shifts between income groups, and : income decile cutpoints fixed at 2005, deflated by median income growth) Source: Tárki Household Monitor 2005, 2007 and Personal income deciles, based on 2005 equivalent incomes Distribution of persons, current year Notes: distribution of persons in 2005 and 2007, within incomes 2005 income decile brackets (deflated by median incomes dynamics for 2007) 2005 level

13 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Persons living in households with different emplyoment composition adults (estimate, 000 persons) Hh head empl, no other empl. Hh head empl, + other empl. Hh head inactive head pensioner, no employed head pensioner, + employed

14 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Summary: the combined income effects in HU … … so far -Lower real incomes, larger inequalities - Stage I (2005- mid 2006): Winners: lower middle classes and public sector employees - Stage II (mid ): Loosers: upper middle classes and public servants - Stage III ( ): loosers: lowest and (somewhat less) the upper deciles

15 Gini WP3 WS, Amsterdam, Oct 22-23, 2010 Crisis areaFinancial/bankingReal/productionSocial/ employment Public finance DimensionsSavings, investments, pension assets Income generating jobs Human capital, social capital Tax/benefit systems and in kind services Affected groups now Asset holders, current and future pensioners, homeowners Employed (poor and non-poor) Usual/ Traditional vulnerable groups Cash and in kind benefit recipients Ways how these affect future generations Re-emerging claims to reconsider public/private pension portfolios increase strain on tax based public pensions Poverty risk of active age families (more likely with with children) Child poverty and deprivation in marginalised groups Potential access restrictions to quality in pre- school institutions, schools and healthcare Further research: a potential frame of analysis for an intergenerational assessment of the effects of the crisis


Download ppt "Gini WP3 WS, Amsterdam, Oct 22-23, 2010 István György Tóth Effects of the crisis on the income distribution in Hungary (some initial results) Data From."

Similar presentations


Ads by Google