March 19th, 2008
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Income gap closes as high earners lose out

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The gap between rich and poor in Hungary has closed considerably in the past two years, according to a TÁRKI report entitled “Household monitor reports 2008.” Since fall 2005, the difference in income between those with the highest income and the middle class has diminished.

The change is due to middle-income families earning more and the rich making less with the biggest losers being those earning double the national average. The report comes against the backdrop of slowing economic growth, rising inflation, falling consumption and a significant decrease in real wages.

The researchers believe the change was the result of reforms to government subsidies and taxes. The proportion of poor people in Hungary remained rooted on 13%, while only one third of all households have savings.

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  1. Simple Simon says:
    March 19, 2008 at 7:49 pm

    This flies against the common wisdom that people with money can find ways to hide it. However, it also bodes ill for a nation as it says there’s no chance of getting ahead.