IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2025v2p261-276.html
   My bibliography  Save this article

Assessing The Impact Of Social Welfare On Income Inequality And Sustainable Economic Development In The European Union

Author

Listed:
  • MECA ALINA

    (DOCTORAL SCHOOL OF SOCIAL AND HUMAN SCIENCES, DUNAREA DE JOS UNIVERSITY OF GALATI, ROMANIA)

  • ZLATI MONICA LAURA

    (DEPARTMENT OF BUSINESS ADMINISTRATION, DUNAREA DE JOS UNIVERSITY OF GALATI, ROMANIA)

  • VALENTIN-MARIAN ANTOHI

    (DEPARTMENT OF BUSINESS ADMINISTRATION, DUNAREA DE JOS UNIVERSITY OF GALATI, ROMANIA)

  • COSTINELA FORTEA

    (DEPARTMENT OF BUSINESS ADMINISTRATION, DUNAREA DE JOS UNIVERSITY OF GALATI, ROMANIA)

Abstract

Income inequality is a major challenge for the European Union, with significant implications for economic sustainability, social stability and cohesion between Member States. This study aims to analyse the impact of economic and social factors on income distribution in the EU, using the GINI coefficient as the dependent variable. Given the importance of public policies in reducing economic disparities, the research investigates the relationships between economic growth, employment, education, poverty and social protection on income inequality over the period 2014- 2023. The methodology used is based on a generalized linear regression model estimated using Eurostat data to determine the influence of each variable on income distribution. The results suggest that economic expansion contributes to reducing inequality. Also, the at-risk-of-poverty rate positively influences income inequality, reflecting the limited effectiveness of social protection mechanisms. In addition, employment does not automatically reduce inequality, being influenced by job insecurity and wage differentials. Based on these findings, the study recommends a number of European public policies, including increased investment in education and lifelong learning, improving the efficiency of social transfers, implementing progressive tax policies and stimulating employment in productive sectors. The results are useful for economic and social policy makers in the European Union, informing the formulation of effective strategies to reduce income inequality and promote inclusive growth.

Suggested Citation

  • Meca Alina & Zlati Monica Laura & Valentin-Marian Antohi & Costinela Fortea, 2025. "Assessing The Impact Of Social Welfare On Income Inequality And Sustainable Economic Development In The European Union," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 261-276, April.
    • Handle: RePEc:cbu:jrnlec:y:2025:v:2:p:261-276
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2025-02/22_Meca.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Georg Kanitsar, 2022. "The Inequality-Trust Nexus Revisited: At What Level of Aggregation Does Income Inequality Matter for Social Trust?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 171-195, August.
    2. Ahmad, Mahmood & Peng, Tao & Awan, Ashar & Ahmed, Zahoor, 2023. "Policy framework considering resource curse, renewable energy transition, and institutional issues: Fostering sustainable development and sustainable natural resource consumption practices," Resources Policy, Elsevier, vol. 86(PB).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Cauvel & Miguel Alejandro Sanchez, 2023. "Life Expectancy and the Labor Share in the U.S," Working Papers PKWP2308, Post Keynesian Economics Society (PKES).
    2. Awijen, Haithem & Ben Jabeur, Sami & Ballouk, Houssein, 2024. "Mineral policy dynamics and their impact on equity market volatility in the global south: A multi-country analysis," Resources Policy, Elsevier, vol. 99(C).
    3. Wang, Yulin & Han, Mo & Liu, Kai, 2024. "Towards sustainable path: Measuring the effectiveness of natural resource utilization, renewable energy resources, fintech, environmental investments, and research & development," Resources Policy, Elsevier, vol. 93(C).
    4. Ma, Xiaowei & Xu, Xueya & Wang, Zijie & Zhao, Xin & Lee, Hyoungsuk & Truskolaski, Tadeusz, 2024. "Technological innovation, industrial structure upgrading and mining energy efficiency: An analysis based on the super-efficient EBM model," Resources Policy, Elsevier, vol. 98(C).
    5. Baudino, Marco, 2024. "Oil rents, renewable energy and the role of financial development: Evidence from OPEC+ members," Resources Policy, Elsevier, vol. 99(C).
    6. Wang, Feng & Rani, Tayyaba & Razzaq, Asif, 2024. "Resource curse, energy consumption, and moderating role of digital governance: Insights from South Asian countries," Resources Policy, Elsevier, vol. 98(C).
    7. Leo Azzollini & Ebru Sanlitürk & Vytenis Deimantas & Selin Köksal, 2025. "At Which Level Does Unemployment Affect Political Trust? A Multilevel Analysis Across Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 177(3), pages 1213-1287, April.
    8. Jiang, Chun & Qiu, Yihan & Li, Xiao-Lin & Si, Deng-Kui, 2024. "Does stock market liberalization promote entrepreneurship?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 480-495.
    9. Hashemizadeh, Ali & Ju, Yanbing & Abadi, Faezeh Zareian Baghdad, 2024. "Policy design for renewable energy development based on government support: A system dynamics model," Applied Energy, Elsevier, vol. 376(PB).
    10. Hwang, Young Kyu & Venter, Alanda, 2025. "The impact of the digital economy and institutional quality in promoting low-carbon energy transition," Renewable Energy, Elsevier, vol. 238(C).
    11. Ullah, Asad & Ali, Amjad, 2024. "Investigating Corruption, Income Inequality, and Environmental Degradation in Pakistan: A Time Series Analysis," MPRA Paper 121291, University Library of Munich, Germany.
    12. Wang, Zhuo & Li, Haoyuan & Zhang, Yuan, 2024. "Sustainability education and resource curse control in the selected resource-rich economies," Resources Policy, Elsevier, vol. 97(C).
    13. Palmisano, Flaviana & Sacchi, Agnese, 2024. "Trust in public institutions, inequality, and digital interaction: Empirical evidence from European Union countries," Journal of Macroeconomics, Elsevier, vol. 79(C).
    14. Giganti, Patrizio & Barra, Cristian & Falcone, Pasquale Marcello, 2025. "Unveiling the nexus of institutional quality and renewable energy utilizing a Topic Modelling approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 214(C).
    15. Sarracino, Francesco & Slater, Giulia, 2024. "The trust paradox," MPRA Paper 120053, University Library of Munich, Germany.
    16. Wang, Haoliang & Li, Jingwen, 2024. "Does oil, gas, and mineral rents reduce amid rising environmental policy stringency? Mediating role of financial development in G11 countries," Resources Policy, Elsevier, vol. 91(C).
    17. Li Yang & Irum Shahzadi & Xiaowei Feng & Abdelmohsen A. Nassani, 2024. "Do climate change policies, and environmental regulations affect the financial performance: policy-based analysis in context of green innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 32137-32161, December.
    18. Weizhen Zhan & Zhenwu You, 2024. "Factors influencing villagers’ willingness to participate in grassroots governance: evidence from the Chinese social survey," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    19. Sarracino, Francesco & Slater, Giulia, 2025. "Economic possibilities for our grandchildren reloaded," MPRA Paper 125369, University Library of Munich, Germany.
    20. Tambari, Ishaya & Failler, Pierre & Jaffry, Shabbar, 2024. "Understanding the Interplay: Oil price and renewable energy investment in Africa's net oil importing and net oil exporting countries," Resources Policy, Elsevier, vol. 91(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2025:v:2:p:261-276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae The email address of this maintainer does not seem to be valid anymore. Please ask Ecobici Nicolae to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.