Income Inequality of Population in European Countries During COVID-19

Abstract

The COVID-19 pandemic has serious economic and social consequences, including impacts on the socio-economic situation of households. In our contribution, we want to focus on the effects of the pandemic on the income inequality of the population of European countries and its causes. In the theoretical part, we present several studies that were created on the given issue, mainly at the international, but also at the national level from Slovakia, Czechia and other national states. We also clarify the difference in the results that the studies bring. In the analytical part, using indicators from the EU SILC surveys from the Eurostat database, we describe the development of the level and rate of income inequality in European countries in 2019-2021 (the last available data), which is last pre-pandemic and two pandemic years. We describe income inequality measured by the Gini coefficient and by median income. We describe the income level according to average income values. For comparison, we present data on income in euros vs. in PPS. The effects of the pandemic on the income inequality of European nations are very diverse, but common factors across European countries that had an impact on the development can be specified. We summarize these in the work. In conclusion, we point out, among other things, the importance of investigating the given issue, especially in the context of crisis developments or other turbulent changes in the European economic environment that await us prospectively.