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The Impact Of Demographic Dynamics On Income Inequality At Regional Level: The Intriguing Case Of Romania

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  • Mihaela SIMIONESCU

    (University of Bucharest, Faculty of Business and Administration, Bucharest, Romania; Academy of Romanian Scientists, Bucharest, Romania; Institute for Economic Forecasting, Romanian Academy, Bucharest, Romania)

  • Daniela-Luminita CONSTANTIN

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Erika MARIN

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

Income inequality, reflecting the uneven distribution of wealth across a country’s population, poses a significant challenge for most of countries. In the current international context Romania is an intriguing case, taking into account the trend of increasing the wage share in GDP while faster growth of salaries compared to labour productivity enhances inflation that is already at high level. This paper addresses the income inequality in Romanian regions, with the main objective of assessing the impact of demographic factors on income inequality in the 42 (NUTS3) counties in the 2014-2021 period based on linear regressions with bootstrap standard errors and dynamic panel data model. The results indicate a direct impact of the proportion of population of 65 years and more on income inequality measures, while fertility rate and employment reduced the wage share in GDP. These results suggest policy measures aimed at promoting active aging and sustainable pension system, family-friendly policies, job creation, upskilling workforce.

Suggested Citation

  • Mihaela SIMIONESCU & Daniela-Luminita CONSTANTIN & Erika MARIN, 2025. "The Impact Of Demographic Dynamics On Income Inequality At Regional Level: The Intriguing Case Of Romania," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 17(1), pages 5-17, March.
    • Handle: RePEc:rom:mrpase:v:17:y:2025:i:1:p:5-17
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    References listed on IDEAS

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    3. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
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