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On The Relationship Between Income Inequality And Unemployment

Author

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  • Hristo Mavrov

Abstract

The neoclassical theory postulates that high unemployment is a natural price for lower income inequality. This paper discusses theoretically and investigates empirically the relationship between inequality and unemployment using data for the European countries including Bulgaria. The conclusion is that there is no trade-off between the two variables -which means that the relationship between them is positive. An appropriate policy mix can achieve simultaneously low unemployment and low inequality.

Suggested Citation

  • Hristo Mavrov, 2020. "On The Relationship Between Income Inequality And Unemployment," INTERNATIONAL SCIENTIFIC AND PRACTICAL CONFERENCE "HUMAN RESOURCE MANAGEMENT", University of Economics - Varna, issue 1, pages 147-155.
  • Handle: RePEc:vrn:hrmsnr:y:2020:i:1:p:147-155
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    More about this item

    Keywords

    Income inequality; Unemployment; Gini coefficient; European countries;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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