Impact of private transfers on households income

The increasing degree of income inequality in Poland rises a question whether these inequalities should be reduced and if so, how the income equalization should be done. In this work the role of private transfers in the household income is shown. It was studied what affects the probability of a private transfer and what are the factors which determine the transfer value. The obtained results suggest the motivation for private transfers and an effect of crowding out private transfers by public transfers. The results for Poland are compared with the results for England, Denmark and Germany.