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Examining the income inequality and poverty trends in Romania

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  • Jianu, Ionuț
  • Tudorache, Maria-Daniela

Abstract

This paper examines the recent dynamics of income inequality and poverty in Romania in comparison with the European Union, focusing on their main determinants. The analysis combines descriptive and comparative approaches with correlation techniques to explore the relationship between social indicators and key variables such as education, labour market conditions, and institutional quality. The results show that, although Romania has recorded a significant reduction in income inequality and a moderate decline in the poverty rate over the last decade, major challenges persist, particularly in rural areas and among vulnerable groups. The findings highlight the important role of social transfers in reducing inequality, but also their limited effectiveness in addressing relative poverty. At the same time, education and institutional quality are critical factors negatively associated with poverty and inequality.

Suggested Citation

  • Jianu, Ionuț & Tudorache, Maria-Daniela, 2026. "Examining the income inequality and poverty trends in Romania," EconStor Conference Papers 344071, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esconf:344071
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    References listed on IDEAS

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    1. Nobuhiro Mizuno & Katsuyuki Naito & Ryosuke Okazawa, 2017. "Inequality, extractive institutions, and growth in nondemocratic regimes," Public Choice, Springer, vol. 170(1), pages 115-142, January.
    2. Edinaldo Tebaldi & Ramesh Mohan, 2010. "Institutions and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1047-1066.
    3. Dorin Jula & Lavinia Mastac & Diane Paula Corina Vancea & Kamer-Ainur Aivaz, 2025. "A Deep Dive into Institutional and Economic Influences on Poverty in Europe," Risks, MDPI, vol. 13(6), pages 1-23, May.
    4. Marinela ISTRATE & Raluca Ioana HOREA-ȘERBAN, 2018. "The dynamics of poverty and its consequences on regional inequalities in Romania," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 63-86, June.
    5. Jianu, Ionut & Tudorache, Maria-Daniela, 2025. "The impact of institutions on income inequality in the EU Member States," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(4), pages 157-165.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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