Motivation: Labour market institutions are currently considered as the basic condition for high level of economic development. Decreasing income inequalities on contrary are among the main objectives of macroeconomic policy in the European Union (Europe 2020 Strategy), because unequal distribution may result in lower growth and development rates. The research done in the article is consisted with the institutional theory (D.C. North's interpretation). Aim: The main aim of the article is to analyse the relations between labour market institutions and income inequalities. There is also an attempt to answer the question if rigid labour market institutions reduce income inequality in European countries. This article provides a taxonomic analysis of labour market institutions in the EU countries. Data from Eurostat, World Bank, Fraser Institute, OECD are used. The article covers selected years: 2010 and 2016. Results: The countries were grouped according to the level of labour market institutions and in regard to income inequalities. The differences between the members of the groups were analysed between 2010 and 2016. Article ends with conclusions connected with ORIGINAL ARTICLE
The diversity of the labour market in the Visegrad Group countries is presented in the article from an institutional perspective. Institutions such as different tax and transfer policies, employment protection legislation, or active and passive labour market policies can affect not only the effectiveness of the economy from a macro perspective, but they can also be crucial in determining the system of rules and incentives for earning money. The institutional conditions of the labour market directly affect the behaviour of labour market participants, their incomes, and therefore income inequalities. To asses and compare the situation between the Visegrad group countries, a synthetic measure of labour market institutions is calculated. A taxonomic analysis is done to group the V4 countries against other selected European Union countries, which enables the assessment and comparison of similarities and differences across the Visegrad countries. Finally, the trade-offs between a synthetic measure of labour market institutions and income inequalities are analysed. The Pearson correlation coefficient and, additionally, the Spearman’s rank correlation coefficient are applied. The analysis is done for 2016, as it was the most recent data available while writing the article. The results from such an analysis can help to answer the question of the state’s role in limiting income inequalities through labour market institutions and to identify the policies which are the most effective in this field.
Motivation: The income inequalities are considered an important economic and social problem, because increasing income inequalities may make it difficult to achieve such policy goals as: social cohesion and inclusive development. State's interference through redistribution is aimed to decrease the differences between the rich and poor. Even though social transfers alleviate the income inequalities, the extent to which they decrease the gap between the rich and the poor is different in European Union (EU) countries. The answer to the question of redistribution effectiveness is extremely important from this perspective. Aim: The article aims to present the diversity of EU countries from the perspective of income inequalities, social transfers (government expenditures on social protection, health and education) and finally redistribution. Its aim is also to assess the impact of social transfers on inequalities on the basis of dynamic panel data model. Results: There is no significant relationship between the level of social transfers and Gini disposable income. However, the results of regression analysis proved that government expenditures on social protection significantly increase the difference between market and disposable income inequalities (Gini gap) and therefore more effectively decrease income inequalities.
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