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Income Inequalities in the Baltic States

Mikk Titma and Rein Murakas
International Journal of Sociology
Vol. 34, No. 2, Young Adults' Careers in Post-Soviet Countries (Summer, 2004), pp. 39-71
Published by: Taylor & Francis, Ltd.
Stable URL: http://www.jstor.org/stable/20628711
Page Count: 33
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Income Inequalities in the Baltic States
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Abstract

The article concentrates on shock therapy introduced over the first years of transition in Latvia and Estonia and the factors that help to explain the trends in income mobility during this period. The situation in the Baltic countries is compared with another type of shock therapy, used in Russia and Ukraine, and Belarus, where market reforms have been introduced only recently. To consider these issues, data from the comparative longitudinal project Paths of a Generation investigating the age cohort born in 1965-66 were used. The article concludes that opening market opportunities in the Baltic countries allow the engagement of human resources in the process of building up the market economy. The results indicate that human capital, activity in labor relations, and education are rewarded by the market with higher incomes and upward mobility. Little activity in labor relations, however, can be associated with low incomes and downward mobility.

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