Idiosyncrasies of recent growing inequalities in Hungarian income distribution

Balázs Krémer

During past years of financial crises and “great recession” most of the European countries have experienced widening income inequalities. These growing disparities are multifactorial, not simply affected by earned incomes in labor markets, social transfers or fiscal policies and revenue regimes, but also by indirect consequences of earlier running indebtedness and amortizing loans.

This paper attempts to take into account various factors of growing income inequalities, and Hungarian biases from international trends. As a conclusion, we will argue that relatively high and rapid growths of Hungarian inequalities cannot seen and interpreted as an unlucky consequence of great recession, rather as an outcome of intended politics of ruling government.