Social development and public debt sustainability

Vavoura, Chara; Vavouras, Ioannis

doi:10.12681/scad.25739

Cited by 1 publication

(2 citation statements)

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“…This idea is not new in the literature, and it is actually common in the case of developed economies (Jianu et al 2021). For Greece in particular, the relationship between income distribution and economic growth has been found to depend heavily on the effectiveness of the redistributive measures, mainly social transfers, used by the state (Vavoura and Vavouras 2022). We should not, however, dismiss the fact that the redistributive role of social transfers in Greece is limited to pensions, since all other forms of social transfers have been found to exert insignificant effects on income distribution (Papatheodorou and Petmesidou 2006).…”

Section: Discussionmentioning

confidence: 99%

“…Secondly, there is an opaque link between income distribution and economic growth dependent on a number of factors, such as market conditions and the extent of the state's redistributive role. The critical factor is the effectiveness of redistributive measures, mainly social transfers, used by the state (Vavoura and Vavouras 2022). In the case of the EU member states, income inequality has been found to be positively correlated with economic growth in the cases of the economically developed member states and negatively correlated in the cases of the developing ones (Jianu et al 2021).…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Recent Economic Crises on Income Inequality and the Risk of Poverty in Greece

et al. 2023

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We consider the impact of the two recent economic crises, one that resulted from the great recession of 2007–2009 and one following the COVID-19 pandemic, on income inequality and the risk of poverty in Greece. To this end, we also investigate the key macroeconomic variables affecting the Greek income distribution. We find that alternative measures of inequality and relative poverty have deteriorated during the years of crises, implying that the country’s response to economic shocks has been particularly harmful for its more disadvantaged citizens. Regarding the variables affecting the income distribution, we show that income inequality and the risk of poverty increase with growth, implying that the benefits of growth, and burdens of recession, are distributed unequally among members of the Greek society. Moreover, inequality appears to increase with unemployment and decrease with the share of wages and salaries in total income. This finding highlights the importance of labour market regulations and workers’ welfare for attaining equality. Finally, we provide evidence that, during pre-election periods, income inequality is reduced, meaning that the political budget cycles, which are characteristic of the Greek economy, generate gains in terms of equality, but these gains are short-lived and mainly benefit the middle bracket of the income distribution.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%