scholarly journals Financialization and Income Inequality in Selected European Countries, 2004–2013

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 20-32
Author(s):  
Grzegorz Golebiowski ◽  
Piotr Szczepankowski ◽  
Dorota Wisniewska
Keyword(s):  
Income Inequality ◽  
Eastern Europe ◽  
Gini Coefficient ◽  
Central And Eastern Europe ◽  
Value Added ◽  
European Countries ◽  
Total Employment ◽  
The Gini Coefficient ◽  
Synthetic Indicator ◽  
The Impact

Abstract The article examines the impact of financialization on income inequality between 2004 and 2013, through a panel analysis of seven European countries. Moreover, it attempts to examine differences in the perception of the phenomenon between the selected European countries belonging to the G-7 and countries from Central and Eastern Europe. The results demonstrate the existence of individual effects, which means that the level of inequality under examination is influenced predominantly by country-specific factors. The most significant correlation is noticeable between the level of unemployment and the degree of income inequality. An increase in unemployment is accompanied by a rise in the disproportions in the level of income that individual citizens have at their disposal whereas a decrease in the unemployment level contributes to an improvement of the GINI coefficient. Simultaneously, the results confirm the existence of significant correlations between the level of the GINI coefficient and such financialization indicators as the share of employment in finance in total employment and the contribution of the financial sector to total value added creation. The most prominent dependency was discovered when a constructed synthetic indicator was adopted as an indicator of financialization. At the same time, analysis of the synthetic country financialization indicator points to a conclusion that the level of financialization is higher in European countries belonging to the G-7 (especially Great Britain) than in countries from Central and Eastern Europe.

scholarly journals Globalization and Income Inequality: Comparative Analysis of the European Countries

2021 ◽  
Vol 92 ◽  
pp. 08003
Author(s):  
Irina Atanasova ◽  
Tsvetomir Tsvetkov
Keyword(s):  
Comparative Analysis ◽  
Income Inequality ◽  
Value Added ◽  
Developed Countries ◽  
European Countries ◽  
Political Systems ◽  
Problematic Issue ◽  
The Developed Countries ◽  
The Impact ◽  
The Eu

Research background: The globalization of the European countries within the EU and the Eurozone is primarily economic and is expressed by the free trade and the movement of capital and labour, which determines the incomes and the GDP. Globalization and its impact on inequality is becoming an essential and problematic issue, especially in the context of on-going economic integration processes between the countries in Europe, which seek to converge their economic, social and political systems in the Euro area. The process of inequality has become even more relevant in the context of globalization. Purpose of the article: The paper aims to examine the impact of globalization on the inequality in the developed and the emerging economies in Europe. Methods: On the basis of an econometric assessment, a comparative analysis of the effect of globalization on the inequality in the developed European countries and the emerging countries is carried out. Findings & Value added: The paper analyses the essential aspects and the effects of the income inequality dynamics, both horizontally and vertically. It also addresses the question of whether the effect of globalization on the economic growth and the inequality is the same for the developing and the developed countries, respectively. Based on the research, seven important conclusions are reached.

scholarly journals Sampling Errors and Cross-Country Comparisons of Income Inequality

2001 ◽  
Author(s):  
Rolf Aaberge
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Alternative Measure ◽  
Sampling Errors ◽  
The Gini Coefficient ◽  
Wide Range ◽  
Cross Country ◽  
The Impact ◽  
Cross National

The growing interest in cross-national comparisons of income inequality is primarily a result of the establishment of the Luxembourg Income Study (LIS) database and the wide range of studies on income inequality based on LIS data. The majority of these studies suffer, however, from a major weakness since sampling errors are neither reported nor taken into account when nations are ranked according to estimates of the Gini coefficient or some alternative measure of inequality. This paper discusses the impact of accounting for sampling errors when making comparisons of income inequality across nations.

Inequalities and political populism: The case of Bulgaria

SEER ◽  
2020 ◽  
Vol 23 (2) ◽  
pp. 233-244
Author(s):  
Lyuboslav Kostov
Keyword(s):  
Eastern Europe ◽  
Gini Coefficient ◽  
Central And Eastern Europe ◽  
Political Rhetoric ◽  
Macroeconomic Shocks ◽  
Theoretical Literature ◽  
The Gini Coefficient ◽  
The Relationship

The article evaluates and analyses the dynamics of inequalities in Bulgaria during 2010-2020 as quantified by a set of particular indicators including the Gini coefficient, the S80/S20 indicator and the share of income held by the richest five per cent. The article examines the relationship between these inequalities and the growth of a certain type of political rhetoric which the literature clearly categorises as populism and which has been rising in central and eastern Europe as in other places elsewhere. In addition, the most up-to-date theoretical literature on these issues is studied and summarised. Social and macroeconomic shocks evidently affect the development of inequalities and, with the global Covid-19 pandemic, we are in the middle of one such set of shocks. The article concludes that a broad public and expert debate is overdue on the problems of inequalities and the consequences of their growth - namely: the development of populist rhetoric - and that reforms are required to reduce inequalities to within parameters that are more socially acceptable as a means of reducing the incidence of populism.

scholarly journals The labor share and income inequality: some empirical evidence for the period 1990-2015

2020 ◽  
Vol 28 (84) ◽  
pp. 173-195
Author(s):  
Iñaki Erauskin
Keyword(s):  
Labor Market ◽  
Panel Data ◽  
Income Inequality ◽  
Gini Coefficient ◽  
Content Type ◽  
Labor Share ◽  
Income Share ◽  
The Gini Coefficient ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyze empirically the relationship between the labor share and income inequality, as measured by the Gini coefficient and by the income shares for different quintiles, during the period 1990–2015 for 62 developed and developing countries. Design/methodology/approach This study uses panel data techniques to analyze empirically the relationship between the labor share and income inequality. Findings This paper finds that a lower labor share is associated with a higher Gini coefficient. A lower labor share is found to be strongly associated with a smaller income share for the lowest two quintiles and larger income share for the highest quintile and weakly associated with a smaller income share for the third and fourth quintiles. Moreover, this paper finds that the lower the quintile, the stronger the impact of the labor share on the income share of the quintile. Social implications Policymakers should take into account the evolution of the labor share. Public policies that improve labor market outcomes, such as those aimed to promote participation in the labor market and strengthen the human capital of low-income groups, seem necessary to prevent the rise in economic inequalities. Moreover, as the digital transformation of society progresses, policies to promote skill deepening may have an important role in reversing excessive inequalities. Originality/value How changes in the labor share are associated with changes in the Gini coefficient, and how this is driven by income shares for different quintiles, for a broad range of countries during the most recent period, has not been comprehensively studied using panel data techniques.

Education expenditures and income distribution: an empirical analysis on European countries

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 248-257
Author(s):  
Ferdi Celikay ◽  
Mehmet Sengur
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Gini Coefficient ◽  
European Countries ◽  
Education Expenditure ◽  
Content Type ◽  
The Gini Coefficient ◽  
Education Expenditures ◽  
Short And Long Term

Purpose This study aims to examine the relationship between public sector education expenditure and the GINI coefficient as a measure of injustice in income distribution. Design/methodology/approach Data from 31 European countries gathered from 2004 to 2011 were analyzed using panel error correction models. Findings According to the study’s findings, a relationship between education expenditures and the GINI coefficient exists. There is a 1 per cent increase for the European countries examined in this study in their rate of education expenditure in gross domestic product (GDP), which raises the GINI coefficient by 0.20 per cent in the short-term and decreases it by 0.22 per cent in the long-term, as expected. Thus, an increase in the proportion of education expenditures in GDP affects the GINI coefficient in a statistically significant, negative way over the long-term. Originality/value This study fills a gap in the literature by determining whether the interaction between education expenditure and GINI coefficient changes in the short- and long-term. The results show that education expenditure generates positive results particularly by lowering income inequality in the long-term. This interaction can be more clearly observed in developing countries. So this conclusion adds an important empirical evidence to the literature and it may contribute in forming policies toward reducing income inequality.

Clusterization of post-communist countries of the Central and Eastern Europe by income inequality level

2021 ◽  
Vol 72 (5) ◽  
pp. 41-52
Author(s):  
T. Cherkashyna
Keyword(s):  
Income Inequality ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
National Income ◽  
Analysis Tool ◽  
Tax Rate ◽  
Low Level ◽  
The Third ◽  
High Level ◽  
Communist Countries

Using level of income inequality, the clustering of post-communist countries of the Central and Eastern Europe is carried out by the following indicators: Gini index, share in the national income of the second quintile group, share in the national income of the third quintile group, share in the national income of the fourth quintile group, share in the national income of 10% of the poorest, share in the national income of 20% of the richest.,Сluster analysis (k-means method), in the programming environment Statistica is used as analysis tool and five clusters are obtained. The first cluster includes 8 countries (Albania, Hungary, Poland, Bosnia and Herzegovina, Czech Republic, Сroatia, Russia, Slovakia) is characterized by sufficiently low level of income inequality and can be explained by flow of foreign investment and business transnationalization contributing to the increase of incomes of the main population groups of these countries. The second cluster includes 4 countries (Belarus, Slovenia, Ukraine, Moldova) and is characterized by comparatively low level of income inequality, but high level of property inequality due to heredity, аccumulated wealth та concentration of physical and financial capital by so called «oligarchic clans». The third cluster includes 5 countries (Bulgaria, Montenegro, Macedonia, Romania, Serbia) and is characterized by medium level of income inequality. The fourth and fifth clusters include so called «Baltic tigers» (Latvia, Lihuania, Estonia) and is characterized by high level of income inequality as the result of the occurrence of «excess profits» of financial assets owners. In order to decrease the income inequality in the investigated countries, the following measures are proposed: for the countries of the first cluster to accelerate deconcentration of capital ownership by «spaying» (redemption) of privatized enterprises shares by all categories on preferential terms (so called «ESOP programs»); for the countries of the second cluster to implement progressive tax scale where the tax rate for different groups of population vary depending on the income received and citizens with the lowest incomes (at the level of subsistence minimum or minimum wage) do not pay individual taxes at all; for the countries of the third cluster to cope with «shadow» economy and informal unemployment; for the counties of the fourth and fifth clusters to decrease tax burden on private entrepreneurs and thus stimulate self-employment.

scholarly journals Representation of the image of Russia and Central Europe in the British press. The impact of media on intercultural communication in global context

2021 ◽  
Vol 129 ◽  
pp. 10010
Author(s):  
Silvia Polakova ◽  
Jozef Bruk ◽  
Lenka Môcova
Keyword(s):  
Mass Media ◽  
Eastern Europe ◽  
Intercultural Communication ◽  
Political Development ◽  
Value Added ◽  
Cultural Knowledge ◽  
Cognitive Approach ◽  
The Media ◽  
British Press ◽  
The Impact

Research background: Twenty-first century’s sees strong globalization trends in which mass media play crucial role in shaping public opinion which might saliently impact intercultural communication on the international level. Purpose of the article: This paper focuses on the representation of the image of Russia and Central and Eastern Europe in the British press and, besides, it sets out the role of stereotyping in intercultural communication. The article writers assume that the stereotypes play pivotal role in image shaping of a country in the media. Above all, the most efficient way to not stereotype is a straightforward communication of the participants alongside with the knowledge of the participant’s background, i. e. cultural knowledge. Drawing on the information from the British press, Russia, Central as well as Eastern Europe appears not solely as a geographical region. On the contrary, despite the fast economic, social and political development, its image abroad is still predominantly negative. Methods: The paper, in conjunction with the cultural linguistics and cognitive approach, reveals the range of metaphorical expressions, in particular cognitive aspect of metaphors used by British journalists, which, in turn form the image of Russia in the British press. Findings & Value added: The paper suggests that the analysis of the image of country in the mass media might apply to the investigation of images of other countries as well as to comparative studies.

scholarly journals Mining, Poverty, and Income Inequality in Central and Eastern European Countries: What Do the Data Tell Us?

2021 ◽  
Vol 24 (3) ◽  
pp. 7-25
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Income Inequality ◽  
Random Effects ◽  
Poverty Reduction ◽  
Common Ground ◽  
European Countries ◽  
Estimation Methods ◽  
Eastern European ◽  
Infrastructural Development ◽  
Eastern European Countries ◽  
The Impact

The study investigates the effect of mining on both poverty and income inequality in Central and Eastern European countries (CEECs) using econometric estimation methods with panel data spanning from 2009 to 2019. Another objective of this paper was to determine if the complementarity between mining and infrastructural development reduced poverty and or income inequality in CEECs. What triggered the study is the failure of the existing literature to have a common ground regarding the impact of mining on poverty and or income inequality. The existing literature on the subject matter is contradictory, mixed, and divergent; hence, it paves the way for further empirical tests. The study confirmed that the vicious cycle of poverty is relevant in CEECs. According to the dynamic generalized methods of moments (GMM), mining had a significant poverty reduction influence in CEECs. The dynamic GMM and random effects revealed that the complementarity between mining and infrastructural development also enhanced poverty reduction in CEECs. Random effects and pooled OLS shows that mining significantly reduced income inequality in CEECs. However, random effects and the dynamic GMM results indicate that income inequality was significantly reduced by the complementarity between mining and infrastructural development. The authorities in CEECs are therefore urged to implement mining growth and infrastructural development-oriented policies in order to successfully fight off the twin challenges of poverty and income inequality.

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