IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v11y2023i12p288-d1289828.html
   My bibliography  Save this article

The Labour Share, Government Expenditure and Income Inequality of Post-Soviet Countries

Author

Listed:
  • Bruno S. Sergi

    (Department of Economics, University of Messina, Piazza Pugliatti, 198122 Messina, Italy)

  • Svetlana Balashova

    (Department of Economic and Mathematical Modelling, Faculty of Economics, Peoples’ University of Russia (RUDN University), Miluh-Maklaya, 6, 117519 Moscow, Russia)

  • Svetlana Ratner

    (Department of Economic and Mathematical Modelling, Faculty of Economics, Peoples’ University of Russia (RUDN University), Miluh-Maklaya, 6, 117519 Moscow, Russia
    V.A. Trapeznikov Institute of Control Sciences, Russian Academy of Sciences, Profsoyznaya, 65, 117997 Moscow, Russia)

Abstract

This study analyses the influence of economic growth on inequality, concentrating on the role of governments as mediators. The period studied is from 2000 to 2020, encompassing 11 post-Soviet countries. The primary estimation method used is the two-stage least squares for panel data. Despite the differences in the economic and political systems at the current development stage, the post-Soviet countries share a common pattern in terms of the relationship between economic growth, the labour income share and the level of inequality, which we first show in this article. Government expenditure has the potential to reduce inequality. However, its effectiveness depends largely on government efficiency and the development of democratic institutions. Despite the increase in government spending on education, more is needed to reduce income inequality. Increased economic performance, productivity, and high-quality state institutions are necessary for this change.

Suggested Citation

  • Bruno S. Sergi & Svetlana Balashova & Svetlana Ratner, 2023. "The Labour Share, Government Expenditure and Income Inequality of Post-Soviet Countries," Economies, MDPI, vol. 11(12), pages 1-22, November.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:12:p:288-:d:1289828
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/11/12/288/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/11/12/288/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    2. Brada, Josef C., 2013. "The distribution of income between labor and capital is not stable: But why is that so and why does it matter?," Economic Systems, Elsevier, vol. 37(3), pages 333-344.
    3. Markus Brueckner & Daniel Lederman, 2018. "Inequality and economic growth: the role of initial income," Journal of Economic Growth, Springer, vol. 23(3), pages 341-366, September.
    4. David Hummels & Rasmus J?rgensen & Jakob Munch & Chong Xiang, 2014. "The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data," American Economic Review, American Economic Association, vol. 104(6), pages 1597-1629, June.
    5. Madsen, Jakob B. & Islam, Md. Rabiul & Doucouliagos, Hristos, 2018. "Inequality, financial development and economic growth in the OECD, 1870–2011," European Economic Review, Elsevier, vol. 101(C), pages 605-624.
    6. Jong-Hee Kim, 2016. "A Study on the Effect of Financial Inclusion on the Relationship Between Income Inequality and Economic Growth," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(2), pages 498-512, February.
    7. Mary O’Mahony & Michela Vecchi & Francesco Venturini, 2021. "Capital Heterogeneity and the Decline of the Labour Share," Economica, London School of Economics and Political Science, vol. 88(350), pages 271-296, April.
    8. David Coady & Allan Dizioli, 2018. "Income inequality and education revisited: persistence, endogeneity and heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 50(25), pages 2747-2761, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tatevik Mkrtchyan & Ani Khachatryan & Svetlana Ratner, 2025. "Measuring Inclusive Growth in Developing Countries: Composite Index Approach and Sectoral Transformation Analysis," JRFM, MDPI, vol. 18(6), pages 1-24, June.

    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. Ionuț Jianu & Marin Dinu & Dragoș Huru & Alexandru Bodislav, 2021. "Examining the Relationship between Income Inequality and Growth from the Perspective of EU Member States’ Stage of Development," Sustainability, MDPI, vol. 13(9), pages 1-16, May.
    2. Elina Tuominen, 2024. "Top-end inequality and growth: empirical exploration of nonlinearities and the time dimension," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(2), pages 311-331, June.
    3. Duc Hong Vo & Thang Cong Nguyen & Ngoc Phu Tran & Anh The Vo, 2019. "What Factors Affect Income Inequality and Economic Growth in Middle-Income Countries?," JRFM, MDPI, vol. 12(1), pages 1-12, March.
    4. Abebe Hailemariam & Tutsirai Sakutukwa & Ratbek Dzhumashev, 2021. "Long-term determinants of income inequality: evidence from panel data over 1870–2016," Empirical Economics, Springer, vol. 61(4), pages 1935-1958, October.
    5. Iva Valentinova Tasseva, 2021. "The Changing Education Distribution and Income Inequality in Great Britain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(3), pages 659-683, September.
    6. Tsun Se Cheong & Guanghua Wan & David Kam Hung Chui, 2022. "Unveiling the Relationship between Economic Growth and Equality for Developing Countries," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(5), pages 1-28, September.
    7. Guido Neidhöfer & Matías Ciaschi & Leonardo Gasparini & Joaquín Serrano, 2024. "Social mobility and economic development," Journal of Economic Growth, Springer, vol. 29(2), pages 327-359, June.
    8. KOUAKOU, Thiédjé Gaudens-Omer & KAMALAN, Angbonon Eugène, 2025. "Développement financier et réduction des inégalités de revenus en Côte d’Ivoire : une approche par la régression quantile [Financial development and reduction of income inequalities in Côte d’Ivoir," MPRA Paper 123616, University Library of Munich, Germany.
    9. Kuldeep Singh & Madhvendra Misra & Jitendra Yadav, 2021. "Corporate social responsibility and financial inclusion: Evaluating the moderating effect of income," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1263-1274, July.
    10. Jaime Alonso-Carrera & Xavier Raurich & Jordi Caballé, 2024. "The Great Gatsby Curve and the Carnegie Effect," Working Papers 1451, Barcelona School of Economics.
    11. Oumarou, Mohamadou & Sali, Oumarou & Hamadou, Alioum, 2024. "Re-examining the Link Between Economic Growth and Income Inequality in Sub-Saharan African Countries: Do Natural Resource Endowments Matter?," OSF Preprints 5sczh, Center for Open Science.
    12. repec:ers:journl:v:xxiv:y:2021:i:3b:p:152-164 is not listed on IDEAS
    13. Hailemariam Abebe & Dzhumashev Ratbek, 2020. "Income Inequality and Economic Growth: Heterogeneity and Nonlinearity," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 24(3), pages 1-15, June.
    14. Yousef Makhlouf & Christopher Lalley, 2023. "Education Expansion, Income Inequality and Structural Transformation: Evidence From OECD Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 255-281, September.
    15. Cameron Nadim Haddad & Daniel Gerszon Mahler & Carolina Diaz-Bonilla & Ruth Hill & Christoph Lakner & Gabriel Lara Ibarra, 2024. "The World Bank’s New Inequality Indicator : The Number of Countries with High Inequality," Policy Research Working Paper Series 10796, The World Bank.
    16. Milena Kowalska, 2021. "The Relationship between Income Inequalities and Economic Growth: New Evidence," European Research Studies Journal, European Research Studies Journal, vol. 0(3 - Part ), pages 152-164.
    17. Madsen, Jakob & Minniti, Antonio & Venturini, Francesco, 2024. "Declining research productivity and income inequality: A centenary perspective," Journal of Economic Dynamics and Control, Elsevier, vol. 167(C).
    18. Hu, Zhining, 2021. "The effect of income inequality on human capital inequality: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 471-489.
    19. Zhu Yan & Jing Jian Xiao & Qiong Sun, 2024. "Moving up toward sustainable development: Digital finance and income mobility," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5742-5763, October.
    20. repec:osf:osfxxx:5sczh_v1 is not listed on IDEAS
    21. Angeles Sánchez & María Navarro, 2021. "Public Policies of Welfare State and Child Poverty in the European Union," Sustainability, MDPI, vol. 13(5), pages 1-17, March.
    22. Seher Gülşah Topuz, 2022. "The Relationship Between Income Inequality and Economic Growth: Are Transmission Channels Effective?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(3), pages 1177-1231, August.

    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:gam:jecomi:v:11:y:2023:i:12:p:288-:d:1289828. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.