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<p>This study examines the redistributive impact of taxes and social transfers on income inequality in six Central and Eastern European countries from 2010 to 2019 using European Union Statistics on Income and Living Conditions microdata. Through inequality decomposition and marginal effect analysis, the study reveals substantial cross-country variation in redistribution effectiveness. While labor income remains the primary driver of inequality, taxes contribute more significantly to redistribution than transfers. The findings highlight the declining role of non-elderly benefits and the rising reliance on pensions, underscoring the importance of tax system design and targeted social policies in addressing inequality.</p>

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The Role of Taxes and Social Transfers in Income Inequality in the Selected Central-Eastern European Countries

  • 期刊论文

  • 发表日期：

    2026年2月9日

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  • Byambasuren Dorjnyambuu,
  • Mónika Galambosné Tiszberger,
  • Gansuld Daashinkhuu

摘要

This study examines the redistributive impact of taxes and social transfers on income inequality in six Central and Eastern European countries from 2010 to 2019 using European Union Statistics on Income and Living Conditions microdata. Through inequality decomposition and marginal effect analysis, the study reveals substantial cross-country variation in redistribution effectiveness. While labor income remains the primary driver of inequality, taxes contribute more significantly to redistribution than transfers. The findings highlight the declining role of non-elderly benefits and the rising reliance on pensions, underscoring the importance of tax system design and targeted social policies in addressing inequality.