scholarly journals Inequality Within the EU-15 Countries: Have Social Benefits Been Pro-poor, Pro-middle Class or Pro-rich?

2020 ◽  
Vol 8 (2) ◽  
pp. 169
Author(s):  
Abdulaleem Moyosore Isiaka
Keyword(s):  
Income Inequality ◽  
Least Squares ◽  
Negative Impact ◽  
Social Benefits ◽  
Parameter Estimates ◽  
Aggregate Level ◽  
Dynamic Panel ◽  
Income Groups ◽  
The Impact ◽  
The Eu

This study utilizes static and dynamic panel models in investigating the impact of social benefits on the aggregate level of income inequality as well as on the income shares of different income groups within the EU-15 countries over the period 1995-2015. While the static panel regression models are estimated with Pooled Ordinary Least Squares (POLS) and Least Squares Dummy Variables (LSDV) techniques, the dynamic panel regressions are estimated using dynamic GMM-IV technique. Diagnostic tests indicate that the results from the GMM-IV technique are consistent and the associated instrumental variables are valid; hence this study gives preference to the results from this technique. The results indicate that social benefits generally have a significantly negative impact on the aggregate level of inequality, a positive impact on the income shares of the low and middle income groups, and a negative impact on the income shares of the high income groups. In the long run, the sign and significance of the parameter estimates remain unchanged but their sizes increase considerably. This research considers a variety of theories and finds that there exists much ambiguity in the theoretical literature. Based on its findings, this study recommends that policymakers address rising income inequality by intensifying efforts towards raising social benefits and ensuring that the welfare system is efficiently managed.

scholarly journals Determinants of Income Inequality in EU Candidate Countries: A Panel Analysis

2019 ◽  
Vol 57 (4) ◽  
pp. 397-413
Author(s):  
Vesna Bucevska
Keyword(s):  
Income Inequality ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Potential Candidate ◽  
Eu Candidate Countries ◽  
Main Determinants ◽  
The Government ◽  
The Impact ◽  
The Eu

AbstractDespite increasing income per capita, the EU candidate and potential candidate countries remain confronted with high levels of income inequality. The purpose of our paper is to identify the main determinants of income inequality among the EU candidate countries. In addition to macroeconomic factors, we also analyze the impact of demographic variables to provide more reliable estimates. Using panel data analysis with fixed effects in the period 2005-2017 for three EU candidate countries (North Macedonia, Serbia and Turkey) we find that the unemployment rate, the level of economic development and the investment rate are the main determinants whose increase leads to a bigger income differentiation in the analyzed countries. The government indebtedness has also a statistically significant, but a negative impact on income inequality. The other two macroeconomic variables in the model – the terms of trade and inflation are statistically insignificant. Among the demographic factors, population growth and education significantly affect income inequality among the EU candidate countries. The obtained results suggest that a sustainable economic growth combined with active measures in the labor market and the improvement of education level of the population could lead to more equal income distribution.

Modernisation of Higher Education – Willful Action or Wishful Thinking? The Case of Bulgaria

2020 ◽  
Vol 8 (3) ◽  
pp. 3-17
Author(s):  
Elena Blagoeva
Keyword(s):  
Higher Education ◽  
Economic Crisis ◽  
Negative Impact ◽  
National Level ◽  
Sustainable Growth ◽  
Research Approach ◽  
Case Study Methodology ◽  
The Impact ◽  
The Eu

The impact of the last global economic crisis (2008) on the European economy put a strain on higher education (HE), yet it also pushed the sector towards intensive reforms and improvements. This paper focuses on the “Strategy for the Development of Higher Education in the Republic of Bulgaria 2014-2020”. With a case study methodology, we explore the strategic endeavours of the Bulgarian government to comply with the European directions and to secure sustainable growth for the HE sector. Our research question is ‘How capable is the Bulgarian HE Strategy to overcome the economic and systemic restraints of Bulgarian higher education?’. Because the development of strategies for HE within the EU is highly contextual, a single qualitative case study was chosen as the research approach. HE institutions are not ivory towers, but subjects to a variety of external and internal forces. Within the EU, this is obviated by the fact that Universities obtain their funds from institutions such as governments, students and their families, donors, as well as EU-level programmes. Therefore, to explore how these pressures interact to affect strategic action on national level, the case method is well suited as it enabled us to study the phenomena thoroughly and deeply. The paper suggests the actions proposed within the Strategy have the potential to overcome the delay, the regional isolation and the negative impact of the economic crisis on the country. Nevertheless, the key elements on which the success or failure of this Strategy hinges are the control mechanisms and the approach to implementation. Shortcomings in these two aspects of strategic actions in HE seem to mark the difference between gaining long-term benefits and merely saving face in front of international institutions.

scholarly journals Inequality, policy polarization and the income gap in turnout

2021 ◽  
pp. 135406882110119
Author(s):  
Matthew Polacko
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Party Systems ◽  
Individual Level ◽  
Income Gap ◽  
Income Groups ◽  
Logistic Regressions ◽  
Negative Impacts ◽  
The Impact ◽  
The Relationship

Previous research into the relationship between income inequality and turnout inequality has produced mixed results, as consensus is lacking whether inequality reduces turnout for all income groups, low-income earners, or no one. Therefore, this paper builds on this literature by introducing supply-side logic, through the first individual-level test of the impact that income inequality (moderated by policy manifesto positions) has on turnout. It does so through multilevel logistic regressions utilizing mixed effects, on a sample of 30 advanced democracies in 102 elections from 1996 to 2016. It finds that higher levels of income inequality significantly reduce turnout and widen the turnout gap between rich and poor. However, it also finds that when party systems are more polarized, low-income earners are mobilized the greatest extent coupled with higher inequality, resulting in a significantly reduced income gap in turnout. The findings magnify the negative impacts income inequality can exert on political behavior and contribute to the study of policy offerings as a key moderating mechanism in the relationship.

scholarly journals The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)

2017 ◽  
Vol 6 (2) ◽  
pp. 114 ◽  
Author(s):  
Tawfiq Ahmad Mousa ◽  
Abudallah. M. LShawareh
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Regression Model ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Negative Impact ◽  
External Debt ◽  
Using Data ◽  
The Impact

In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding  of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth. 

scholarly journals Can the implementation of the Europe 2020 Strategy goals be efficient? The challenge for achieving social equality in the European Union

Equilibrium ◽  
2017 ◽  
Vol 12 (3) ◽  
Author(s):  
Michaela Stanickova
Keyword(s):  
European Union ◽  
Income Inequality ◽  
Labour Market ◽  
Social Inequality ◽  
The European Union ◽  
Social Equality ◽  
Europe 2020 ◽  
Europe 2020 Strategy ◽  
The Impact ◽  
The Eu

Research background: Economic crisis hit all the European Union Member States hard, with the impact of crisis varying considerably. The low growth performance in the EU has increased concerns regarding an increasing wage dispersion, income inequality at large, and social exclusion in line with poverty. Inequality should be seen as a cornerstone of both sustainable and inclusive growth under the Europe 2020 Strategy. Social inequality in the EU is a real problem, which hampers sustainable economic growth. Purpose of the article: The purpose of this study is to introduce evaluation of social development convergence and divergence trends between the EU Member States in the context of the Europe 2020 Strategy. The study gives an outline of the issues of the labour market and income disparities and poverty. Policymakers must be clear about what social objectives they are aiming to achieve, therefore special attention is paid to headline national goals of the Europe 2020 Strategy. Methods: The main task of this study is to assess social dimension and inequalities problems in the EU27 by applying Data Envelopment Analysis method, resp. time-series dynamic efficiency analysis in the form of output-oriented Malmquist Productivity Index. This study contains changes of key social equality indicators related to the Europe 2020 Strategy and compares objectives and general outlines of period 2010-2015, as well as the impact on national economics and living conditions. Findings & value added: Results contain elements of typology premises of the EU28 and point to a large diversity in inequality patterns, as the Author observes both increases and decreases in inequality at the EU level. Recent changes in social inequality have been associated with the business cycle, particularly with the accessibility of the labour market and, of course, with income inequality. Additionally, the development challenges are discussed for improvement of the socioeconomic well-being of the EU and to avoid social disparities.

L'impatto degli accordi Euro-mediterranei sull'ortofrutta italiana: alcuni risultati

2009 ◽  
pp. 105-121
Author(s):  
Alessandra Castellini ◽  
Cinzia Pisano
Keyword(s):  
Gravity Model ◽  
Free Trade Area ◽  
Gravity Equation ◽  
Fruit And Vegetables ◽  
Aggregate Level ◽  
Trade Area ◽  
Mediterranean Countries ◽  
Jel Code ◽  
The Impact ◽  
The Eu

- Sector: some Results Since 1995, the Barcelona Process aims to establish a free trade area between Mediterranean countries by 2010. The most commercialized products from Mediterranean countries are fruit and vegetables. The agreement defines, only for some products, preferences at the entrance of the eu market, limited concession for each partner for single products, limited quantities and calendars. This work tries to analyse the impact of the liberalization on the Italian products applying a gravity model in order to asses the Italian import flows from eight Mediterranean countries which signed the Barcelona agreement. The econometric estimation includes fruit and vegetables at the aggregate level and some specified products that enter in competition with typical Italian Mediterranean production such as citrus, melons, potatoes and tomatoes. Since these Mediterranean countries appear as a highly heterogeneous block related to historical, cultural, political and geographical factors, the gravity equation controls these factors by an augmented gravity equation.JEL Code: Q17 - Agriculture in International TradeParole chiave: accordi euro-mediterranei, mercato italiano, ortofrutta, competitivitŕ, gravity model

scholarly journals The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence

2020 ◽  
Vol 13 (2) ◽  
pp. 26
Author(s):  
Ivana Brkić ◽  
Nikola Gradojević ◽  
Svetlana Ignjatijević
Keyword(s):  
Economic Growth ◽  
Economic Freedom ◽  
Negative Impact ◽  
Developed Countries ◽  
Dynamic Panel ◽  
Heritage Foundation ◽  
Eu Membership ◽  
Time Period ◽  
European Economies ◽  
The Impact

This paper analyzes the impact of economic freedom along with traditional economic factors on economic growth for a panel of European countries. The growth of the gross domestic product was observed over a twenty-year time period on a sample of 43 developing and developed countries. Based on a robust dynamic panel setting, we conclude that increases in economic freedom as expressed by the Index of Economic Freedom/Heritage Foundation (but not its levels) are related to economic growth. The EU membership status either had no effect or it curbed the effect of the economic freedom on growth. We also find that the subprime economic crisis of 2008–2009 exerted a negative impact on the growth of European economies.

Mandatory CSR expenditure and stock return

2020 ◽  
Vol 28 (6) ◽  
pp. 951-975
Author(s):  
Asit Bhattacharyya ◽  
Md Lutfur Rahman
Keyword(s):  
Least Squares ◽  
Stock Returns ◽  
Least Squares Method ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Reverse Causality ◽  
Endogeneity Bias ◽  
Content Type ◽  
The Impact

Purpose India has mandated corporate social responsibility (CSR) expenditure under Section 135 of the Indian Companies Act, 2013 – the first national jurisdiction to do so. The purpose of this paper is to examine the impact of mandated CSR expenditure on firms’ stock returns by using actual CSR spending data, whereas the previous studies mostly focus on voluntary CSR proxied by CSR scores. Design/methodology/approach The authors estimate their baseline regression by using ordinary least squares(OLS) method. Although the baseline regression involving CSR expenditure and stock returns using ordinary least squares method are estimated, endogeneity and reverse causality biases are addressed by using two-stage least squares and generalized method of moments approaches. These approaches contribute mitigating endogeneity bias and biases associated with unobserved heterogeneity and simultaneity. Findings The findings document that mandatory CSR expenditure has a negative impact on firms’ stock returns which supports the “shareholders” expense’ view. This result remain robust after controlling for endogeneity bias and the use of both standard and robust test statistics. The authors however observe that this result holds for the firms with actual CSR expenditure equal to the mandated amount but does not hold for the firms with actual CSR expenditure greater than the mandated amount. Therefore, the authors provide evidence that CSR expenditure’s impact on stock returns depends on whether firms simply comply the regulation or voluntarily chose an amount of CSR expenditure above the mandated amount. Originality/value The primary contribution is to present a valid and robust evidence of negative effect of mandated CSR spending on firms’ stock returns when the mandatory CSR spending rule is already in place. This study contributes by examining the impact of mandated CSR spending on stock during post-implementation period (2015-2017), whereas other studies by Dharampala and Khanna (2018); Kapoor and Dhamija (2017); and Mukherjee et al. (2018) mainly examined the impact of legislation on Indian CSR. The authors use mandated actual CSR expenditure, whereas previous studies mostly focus on voluntary CSR proxied by CSR scores.

scholarly journals Tax Policy and Income Inequality in the Visegrad Countries

2015 ◽  
Vol 61 (6) ◽  
pp. 12-18
Author(s):  
Anna Moździerz
Keyword(s):  
Income Inequality ◽  
Tax Policy ◽  
Negative Impact ◽  
The State ◽  
Consumption Tax ◽  
Tax Reforms ◽  
Tax Rate ◽  
Recent Financial Crisis ◽  
The Impact ◽  
Visegrád Countries

Abstract The financialisation of economies is believed to be the primary cause of the increase in income inequality in the world, occurring on a scale unseen for more than 30 years. One can hypothesise that it is the state that is responsible for the widening inequality, as the state has not sufficiently used the redistributive function of taxation. The purpose of this paper is to study the impact of tax policy on income inequality in Poland, the Czech Republic, Slovakia and Hungary. These so-called Visegrad countries have, in the last several years, carried out some controversial experiments with tax policy, specifically in terms of the flattening of tax progressivity or its replacement with a flat tax, which led to the weakening of the income adjustment mechanism. The imbalance between income tax and consumption tax has contributed to perpetuating income inequality. The verification of tax systems carried out during the recent financial crisis has forced the countries included in this research to implement tax reforms. The introduced changes caused various fiscal and redistributive effects. Analyses show that the changes in income taxation and an increase in the consumption tax rate had the most negative impact on the income and asset situation in Hungary.

EU to United Kingdom moves will fall under any Brexit

2019 ◽  
Keyword(s):  
United Kingdom ◽  
Immigration Policy ◽  
Negative Impact ◽  
Real Wages ◽  
Reduced Pressure ◽  
Content Type ◽  
Freedom Of Movement ◽  
The United Kingdom ◽  
The Impact ◽  
The Eu

Subject UK immigration outlook. Significance Under most Brexit scenarios, freedom of movement between the United Kingdom and the EU-27 will end in December 2020. This will require the United Kingdom radically to reform its immigration policy, both towards EU citizens and, to a lesser extent, non-EU citizens. Impacts Immigration reductions will have a small negative impact on UK public finances, even considering the reduced pressure on public services. There will be some increase in non-EU migration, especially of relatively well-paid workers. There may be some upward pressure on wages in specific sectors, although the overall impact on real wages is likely to be small. A change of prime minister may reduce immigration policy restrictiveness, mitigating the impact without altering the direction of travel.

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