We construct the first consistent series on the long-term distribution of income in Poland by combining tax, household survey and national accounts data. We document a U-shaped evolution of inequalities from the end of the nineteenth century until today: (1) inequality was high before WWII; (2) abruptly fell after the introduction of communism in 1947 and stagnated at low levels during the whole communist period; (3) experienced a sharp rise with the return to capitalism in 1989. We find that official survey-based measures strongly under-estimate the rise in inequality since 1989. Our results highlight the prominent role of capital income in driving the U-shaped evolution of top income shares. The unique inequality history of Poland speaks to the central role of institutions and policies in shaping inequality in the long run. ? 2021, The Author(s).

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1 June 2021

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Journal of Economic Growth 26(2) , pp.187-239, 2021

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DOI: 10.1007/s10887-021-09190-1

https://link.springer.com/article/10.1007/s10273-021-3074-3

This Journal article is published under the centre's Labour programme.