Economic Inequalities in Montenegro

Abstract

The author analyses economic inequalities among the main social groups in Montenegro at the end of the socialist system and during the postsocialist transformation. Economic inequalities are analysed based on an economic status index, which is a composite index made up of multiple indicators: income, consumption, and asset ownership. The empirical basis for the analysis are survey results from 1989, 2003, and 2015. The findings show that there were economic inequalities during the entire period. In the late 1980s, the economic differentiation of social classes was very pronounced, despite the principle of equality with which the socialist system had legitimized itself. The period of postsocialist transformation raised the economic status of all social groups. Notwithstanding such improvement, the differences between the higher and lower social classes persisted.