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

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  • Tomáš Domonkos

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.

Suggested Citation

  • Tomáš Domonkos, 2020. "Nerovnosti a ekonomický rast v krajinách Európskej únie [Inequalities and Economic Growth in EU Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2020(4), pages 405-422.
    • Handle: RePEc:prg:jnlpol:v:2020:y:2020:i:4:id:1284:p:405-422
    DOI: 10.18267/j.polek.1284
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    References listed on IDEAS

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    More about this item

    Keywords

    inequality; economic growth; econometric analysis;
    All these keywords.

    JEL classification:

    • C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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