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Structural Determinants Of Income Inequality In The European Union: Evidence From A Panel Analysis

Author

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  • Giuseppina Malerba

    (Institute of Economic Policy, Catholic University of the Sacred Heart, Via Necchi 5, 20123 Milano, Italy)

  • Marta Spreafico

    (Institute of Economic Policy, Catholic University of the Sacred Heart, Via Necchi 5, 20123 Milano, Italy)

Abstract

Understanding the reasons underlying income inequality has been the aim of much research in recent years. However, there are few structural investigations of the effects of the forces shaping the evolution of income inequality specifically between advanced economies. This paper proposes a theoretical framework of the factors affecting income distribution in a particular set of advanced economies, namely those of the European Union, and utilizes a fifteen-year panel (1995-2010) of 25 countries to identify the effects of several structural determinants of household income inequality. Our empirical analysis shows that families with children, shares of housing owners paying a loan, social mobility and labour markets institutions are the main structural determinants of income inequality in the EU. Also significant are the effects of economic growth and social spending for both monetary transfers and universal services. The paper concludes by providing some policy indications based on these main findings.

Suggested Citation

  • Giuseppina Malerba & Marta Spreafico, 2014. "Structural Determinants Of Income Inequality In The European Union: Evidence From A Panel Analysis," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 122(1), pages 37-84.
    • Handle: RePEc:vep:journl:y:2014:v:122:i:1:p:37-84
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    Cited by:

    1. Kaltenberg, Mary & Foster-McGregor, Neil, 2020. "The impact of automation on inequality across Europe," MERIT Working Papers 2020-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Household disposable income distribution; European Union; Structural determinants; Panel models;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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