Inequalities and Economic Growth in EU Countries Cover Image

Nerovnosti a ekonomický rast v krajinách Európskej únie
Inequalities and Economic Growth in EU Countries

Author(s): Tomáš Domonkos
Subject(s): Social Sciences, National Economy, EU-Accession / EU-DEvelopment
Published by: Vysoká škola ekonomická v Praze
Keywords: inequality; economic growth; econometric analysis

Summary/Abstract: This paper investigates the effects of economic growth on income inequality in EU countries by employing econometric models. We estimated the effect of growth on the share of income for all particular deciles of population and on the Gini. Other control variables were included in the models as well. The results showed a negative effect of economic growth on inequality, while this impact is the largest for the deciles ranging from the third to the seventh. This can be perceived as an indication of a shrinking middle class. Inequality-increasing effects were found for long-term unemployment, openness and partly for indicators of importance of the financial sector. Factors reducing inequality were rule of law and population with tertiary education. The size of government turned out to be a rather insignificant determinant.

  • Issue Year: 68/2020
  • Issue No: 4
  • Page Range: 405-422
  • Page Count: 18
  • Language: Slovak