Politická ekonomie 2020, 68(4):405-422 | DOI: 10.18267/j.polek.1284

Nerovnosti a ekonomický rast v krajinách Európskej únie

Tomáš Domonkosa
a Univerzita Komenského v Bratislave, Fakulta sociálnych a ekonomických vied a Ekonomický ústav SAV, Bratislava, Slovenská republika


Inequalities and Economic Growth in EU Countries

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.

Keywords: inequality, economic growth, econometric analysis
JEL classification: C59, D63, I39

Received: June 3, 2019; Revised: December 31, 2019; Accepted: March 9, 2020; Published: August 24, 2020  Show citation

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Domonkos, T. (2020).
Inequalities and Economic Growth in EU Countries. Politická ekonomie68(4), 405-422. doi: 10.18267/j.polek.1284
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