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of the European Council for Modelling and Simulation



Income Inequality In Hungary


Ildiko Gelanyi, Andras Oliver Nemeth, Erzsebet Terez Varga

Published in:



2020). ECMS 2020 Proceedings Edited by: Mike Steglich, Christian Muller, Gaby Neumann, Mathias Walther, European Council for Modeling and Simulation.



ISSN: 2522-2422 (ONLINE)

ISSN: 2522-2414 (PRINT)

ISSN: 2522-2430 (CD-ROM)


ISBN: 978-3-937436-68-5
ISBN: 978-3-937436-69-2(CD)


Communications of the ECMS , Volume 34, Issue 1, June 2020,

United Kingdom


Citation format:

Ildiko Gelanyi, Andras Oliver Nemeth, Erzsebet Terez Varga (2020). Income Inequality In Hungary, ECMS 2020 Proceedings Edited By: Mike Steglich, Christian Mueller, Gaby Neumann, Mathias Walther European Council for Modeling and Simulation. doi: 10.7148/2020-0116



In this article, we describe the income inequality situation in Hungary from two different perspectives: inequalities among income deciles, and regional differences. Both types of inequalities have increased in the last few years due to changes in the tax and benefit system. An im-portant contributing factor of increasing income inequlat-ies was the introduction of a linear personal income tax, together with the increased role of tax allowances in the family support system. Regional differences have been traditionally significant in Hungary (despite the small size of the country), and the positions of the least devel-oped regions of the country have continued to worsen in the last few years. After assessing the role of the tax and benefit system, we also briefly try to give some insight to possible interventions in order to decrease inequalities among income deciles.

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