chapter  II
23 Pages

Statistical Analysis

Having reviewed the history of income distribution policies in postwar Yugoslavia, 1 we will now attempt to give a detailed statistical account of pay dispersion for the period 1964 to 1983.2

The Dispersion of Personal Incomes

The relative dispersion of earnings in the socialized sector of Yugoslavia in general, and in the socialized industries in particular (shown in Table 1, following, and Appendix Table A), allows us to draw the following conclusions:

(1) By all the measures of inequality used here, the overall relative dispersion of pay has slightly declined in Yugoslavia in the period under investigation; but the noted changes are not substantial. The decline in relative dispersion is substantial only at the extremes ofthe distributional spectrum (P99/P1) and (P9s/P2), corresponding to higher and lower income groups. This declining trend is less pronounced if we use the more synthetic Gini coefficients or the decile ratio (Pg(Y"Pw). Although it is difficult to distinguish clear-cut subperiods of change, one stands out very distinctly: the period of 1964-1969, when we observe a substantial increase in relative dispersion of personal income. These years coincide with the laissez-faire period in Yugoslavia. This period comes to an end in 1971, and soon thereafter a decline of income inequality takes place. This decline intensifies in the 1980s, probably as a result of the economic crisis.