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Labour market institutions and income inequalities across the European Union

Author

Listed:
  • Malgorzata Szczepaniak

    (Nicolaus Copernicus University in Torun)

  • Agnieszka Szulc-Obloza

    (Nicolaus Copernicus University in Torun)

Abstract

Motivation: Labour market institutions are currently considered as the basic condition for high level of economic development. Decreasing income inequalities on contrary are among the main objectives of macroeconomic policy in the European Union (Europe 2020 Strategy), because unequal distribution may result in lower growth and development rates. The research done in the article is consisted with the institutional theory (D.C. North’s interpretation). Aim: The main aim of the article is to analyse the relations between labour market institutions and income inequalities. There is also an attempt to answer the question if rigid labour market institutions reduce income inequality in European countries. This article provides a taxonomic analysis of labour market institutions in the EU countries. Data from Eurostat, World Bank, Fraser Institute, OECD are used. The article covers selected years: 2010 and 2016. Results: The countries were grouped according to the level of labour market institutions and in regard to income inequalities. The differences between the members of the groups were analysed between 2010 and 2016. Article ends with conclusions connected with rules shaping decisions on the labour market as well as relations between inequalities and institutions.

Suggested Citation

  • Malgorzata Szczepaniak & Agnieszka Szulc-Obloza, 2019. "Labour market institutions and income inequalities across the European Union," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 365-377, September.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:3:p:365-377
    DOI: 10.12775/EiP.2019.025
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    References listed on IDEAS

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    Cited by:

    1. Małgorzata Szczepaniak & Agnieszka Szulc-Obloza, 2021. "Associations Between Job Satisfaction and Employment Protection in Selected European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 542-554.

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    More about this item

    Keywords

    income inequalities; labour market; institutions;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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