Labour and capital in generation of inequality within the European Union – sectoral aspects Cover Image

Praca i kapitał w generowaniu nierówności w Unii Europejskiej – aspekty sektorowe
Labour and capital in generation of inequality within the European Union – sectoral aspects

Author(s): Magdalena Cyrek
Subject(s): National Economy, Supranational / Global Economy, Socio-Economic Research
Published by: Wydawnictwo Uniwersytetu Rzeszowskiego
Keywords: income inequality; wage inequality; labour; capital; branches

Summary/Abstract: The study presents results of research on sectoral aspects of inequality between the EU countriesin a period 2004–2013. A special attention was paid to international disparities in gross valueadded and earnings in different kinds of economic activity. Relations between indicators of incomeand wage inequality constituted a base to indicate patterns in capital inequality. Thus, a role oflabour and capital in the creation of international inequality in the structural context was identified. Structural differences between the specified economies are an essential condition in the generationof inequality. This remark is supported by the observed differences within the EU in a share ofearnings in gross value added between branches. The differences are the strongest in public servicesand the weakest in real estate and agriculture. Moreover, disaggregation of inequality into inter andbetween branch differences suggests an increasing influence of structural differences on the creationof inequality. This conclusion is especially important concerning capital.Tendencies in income and wage inequality in the EU prove that capital has a differentiatingcharacter, while engagement of labour has an equalizing influence. Considering branch aspects it ispossible to point out that the most dynamic kinds of activity are specified by especially high incomeinequality and clearly lower wage inequality. It once more indicates tendencies to strengthen a roleof capital in the generation of disparities in the EU. Capital creates the strongest inequality mainlyin finance and insurance and information and communication services. On the other hand, wageinequality is an essential problem concerning traditional kinds of activity, such as agriculture andconstruction.

  • Issue Year: 2017
  • Issue No: 50
  • Page Range: 427-442
  • Page Count: 16
  • Language: Polish