The analysis of the wage inequality influence on the economic growth using asymmetrical function Cover Image

Analiza wpływu nierówności płac na wzrost gospodarczy z wykorzystaniem funkcji asymetrycznej
The analysis of the wage inequality influence on the economic growth using asymmetrical function

Author(s): Paweł Kumor
Subject(s): Socio-Economic Research
Published by: Główny Urząd Statystyczny
Keywords: wage disparities; wages in the national economy; wage differentia; economic growth

Summary/Abstract: Two different views of income (earnings) inequalities coexist in political economy. First, motivating, which postulates bigger earnings differences and second, egalitarian, which postulates less earnings differences. The hypothesis has been advanced in the presented study that inequalities cause different waste of economic effectiveness. On one hand, when Gini indexes are less than the optimum one, their increase causes considerable economic growth. Then the majority of the society accepts the increase of earnings differences. On the other hand, when Gini indexes are too big, their downfall gives less economic profits. The demands of poor people to reduce too big differences in earnings can be corrected by the necessity of using different work input and education level. The research was based on the economic growth model.

  • Issue Year: 55/2010
  • Issue No: 03
  • Page Range: 23-39
  • Page Count: 17
  • Language: Polish