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Institutional Quality and Income Inequality: Evidence from Post-Soviet Countries

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  • Radek Náplava

    (Mendel University in Brno, Czech Republic)

Abstract

This paper focuses on identifying the relationship between institutional quality and income inequality in chosen post-Soviet countries during the period 2002-2017. Using panel analysis is found a nonmonotonic relationship between institutional quality and income inequality. Increasing institutional quality is associated with growing income inequality, but only to a certain extent; from a certain level, higher institutional quality leads to a reduction in income inequality. The growing institutional quality leads to a deepening of income inequality between the richest social class compared to the poorest and middle class. Role in this process plays a particular regulatory quality, which - as it seems - favors the upper 20%.

Suggested Citation

  • Radek Náplava, 2020. "Institutional Quality and Income Inequality: Evidence from Post-Soviet Countries," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 6(2), pages 100-112.
    • Handle: RePEc:men:journl:v:6:y:2020:i:2:p:100-112
    DOI: 10.11118/ejobsat.2020.007
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    More about this item

    Keywords

    institutional quality; income distribution; income inequality; middle class;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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