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The Influence of Income Inequalities on Socio-Economic Development in the European Union

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  • Litwiński Michł

    (Poznań University of Economics and Business, Poznań, Poland)

Abstract

Recently, there has been observed intensified research on the impact of income inequalities on aspects of socio-economic development in the European Union. However, there are no comprehensive analyses concerning the relationship between these phenomena. Therefore the subject of the paper is the influence of income inequalities on socio-economic development. The author would like to verify the hypothesis that the character of the impact of income inequalities on socio-economic development in the European Union is negative. Analysis was conducted for the European Union in 2004-2017 using the panel data model, also estimated was the synthetic indicator of socio-economic development. The research conducted in the paper leads to ambiguous conclusions. On the one hand, inequalities measured for the whole distribution of income have no influence on socio-economic development in the European Union. However, the income gap between the richest and the poorest hinders the mentioned phenomenon.

Suggested Citation

  • Litwiński Michł, 2019. "The Influence of Income Inequalities on Socio-Economic Development in the European Union," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 23(1), pages 45-60, March.
    • Handle: RePEc:vrs:eaiada:v:23:y:2019:i:1:p:45-60:n:4
    DOI: 10.15611/eada.2019.1.04
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    More about this item

    Keywords

    income inequalities; socio-economic development; economic growth; panel model; Gini coefficient; S80/S20 ratio;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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