Development and Finance from issue 2009/3

Ilona Cserháti - Imola Péter - Zsuzsa Varga

Trends in Household Income Stratification in 2008-2009

- Abstract -

This study empirically examines probable changes in household income stratification in the past one and a half years. Our analysis employs the method of microsimulation, which generates missing data by modelling changes at the level of individuals and households. Important trends emerge from the experimental calculations in the ECOS-TAX model as regards the income structure of Hungarian households. In the 2007-2009 period, the Hungarian population is set to suffer a considerable loss of about 5% in real income with the current taxation, contribution and benefit system in place. Such a reduction in income does not evenly affect the whole population. The drop in per capita income is proportional to the relative level of income; the crisis has affected lower-income households more severely. The decrease in the per capita income of the poorest households, which are in the two lowest decile groups, was about twice the average. Only for the richest decile was the loss of income below the average in real terms.


Ilona Cserháti, PhD, research fellow (ECOSTAT Institute for Economic Analyses and Informatics)
Imola Péter, economist (research fellow at Ecostat Government Institute for Strategic Research of Economy and Society)
Zsuzsa Varga, economist (research fellow at Ecostat Government Institute for Strategic Research of Economy and Society)

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