The labour market and income distribution in post-socialist economies – Non-obvious regularities

The goal of this paper is to analyse the major processes which took place on the labour market of post-socialist economies and to check what the outcomes of thee mechanisms used for income distribution. Few findings are especially interesting because of its counterintuitive character. First, there is a “strange” relation between the depth of recession and scale of rise in unemployment. Countries which suffered from quite moderate fall in GDP experienced high level of unemployment, while the economies which noticed substantial recession were able to sustain very limited unemployment rate. One can also expect that economy which suffered from sharp rise in unemployment should be the one in which income inequalities deteriorate in the biggest extend. Again, this is not what has happened in post-socialist countries. Economies like Russia or Ukraine which noticed quite limited rise in unemployment rates, experienced the highest deterioration in the income inequalities indicators. Finally, closer look at labour markets of EU New Member states shows that social cohesion in these countries is a much bigger problem than it appears from simple Gini coefficients.