The aim of the research is to design the model for assessment of the impact of income inequality on economic growth after investigating theoretical interpretations of the impact of income inequality on economic growth and to empirically test it in different groups of the countries. The results are grounded on the panel data of 28 EU countries over the period 1995–2014. In the first part of the Doctoral Dissertation, the content and the concept of the phenomenon of income inequality are dealt with, also discussion questions of its measurement, the theories of the impact of income inequality on economic growth are generalised, analysis of empirical research works conducted by other authors investigating the impact of income inequality on economic growth is carried out. In the second part of the Dissertation, the model for assessment of the impact of income inequality on economic growth is designed, the methods for assessment of the impact of income inequality on economic growth are substantiated and the variables used in the empirical research are discussed. In the third part of the Dissertation, it was found out that an increasing income inequality makes an ambiguous impact on economic growth through different transmission channels: the saving channel, the credit-market imperfections channel, the socio-political unrest channel, the fiscal policy channel. An ambiguous impact of income inequality on economic growth also depends on the country's income inequality level and the country's development level. As estimated in the EU countries, income inequality stimulated economic growth in the groups of the countries attributed with a higher level of income inequality and a different level of country's development. In the groups of the countries attributed with a lower level of income inequality and a different level of country's development, income inequality slowed down economic growth.
The aim of the research is to design the model for assessment of the impact of income inequality on economic growth after investigating theoretical interpretations of the impact of income inequality on economic growth and to empirically test it in different groups of the countries. The results are grounded on the panel data of 28 EU countries over the period 1995–2014. In the first part of the Doctoral Dissertation, the content and the concept of the phenomenon of income inequality are dealt with, also discussion questions of its measurement, the theories of the impact of income inequality on economic growth are generalised, analysis of empirical research works conducted by other authors investigating the impact of income inequality on economic growth is carried out. In the second part of the Dissertation, the model for assessment of the impact of income inequality on economic growth is designed, the methods for assessment of the impact of income inequality on economic growth are substantiated and the variables used in the empirical research are discussed. In the third part of the Dissertation, it was found out that an increasing income inequality makes an ambiguous impact on economic growth through different transmission channels: the saving channel, the credit-market imperfections channel, the socio-political unrest channel, the fiscal policy channel. An ambiguous impact of income inequality on economic growth also depends on the country's income inequality level and the country's development level. As estimated in the EU countries, income inequality stimulated economic growth in the groups of the countries attributed with a higher level of income inequality and a different level of country's development. In the groups of the countries attributed with a lower level of income inequality and a different level of country's development, income inequality slowed down economic growth.
The aim of the research is to design the model for assessment of the impact of income inequality on economic growth after investigating theoretical interpretations of the impact of income inequality on economic growth and to empirically test it in different groups of the countries. The results are grounded on the panel data of 28 EU countries over the period 1995–2014. In the first part of the Doctoral Dissertation, the content and the concept of the phenomenon of income inequality are dealt with, also discussion questions of its measurement, the theories of the impact of income inequality on economic growth are generalised, analysis of empirical research works conducted by other authors investigating the impact of income inequality on economic growth is carried out. In the second part of the Dissertation, the model for assessment of the impact of income inequality on economic growth is designed, the methods for assessment of the impact of income inequality on economic growth are substantiated and the variables used in the empirical research are discussed. In the third part of the Dissertation, it was found out that an increasing income inequality makes an ambiguous impact on economic growth through different transmission channels: the saving channel, the credit-market imperfections channel, the socio-political unrest channel, the fiscal policy channel. An ambiguous impact of income inequality on economic growth also depends on the country's income inequality level and the country's development level. As estimated in the EU countries, income inequality stimulated economic growth in the groups of the countries attributed with a higher level of income inequality and a different level of country's development. In the groups of the countries attributed with a lower level of income inequality and a different level of country's development, income inequality slowed down economic growth.
The aim of the research is to design the model for assessment of the impact of income inequality on economic growth after investigating theoretical interpretations of the impact of income inequality on economic growth and to empirically test it in different groups of the countries. The results are grounded on the panel data of 28 EU countries over the period 1995–2014. In the first part of the Doctoral Dissertation, the content and the concept of the phenomenon of income inequality are dealt with, also discussion questions of its measurement, the theories of the impact of income inequality on economic growth are generalised, analysis of empirical research works conducted by other authors investigating the impact of income inequality on economic growth is carried out. In the second part of the Dissertation, the model for assessment of the impact of income inequality on economic growth is designed, the methods for assessment of the impact of income inequality on economic growth are substantiated and the variables used in the empirical research are discussed. In the third part of the Dissertation, it was found out that an increasing income inequality makes an ambiguous impact on economic growth through different transmission channels: the saving channel, the credit-market imperfections channel, the socio-political unrest channel, the fiscal policy channel. An ambiguous impact of income inequality on economic growth also depends on the country's income inequality level and the country's development level. As estimated in the EU countries, income inequality stimulated economic growth in the groups of the countries attributed with a higher level of income inequality and a different level of country's development. In the groups of the countries attributed with a lower level of income inequality and a different level of country's development, income inequality slowed down economic growth.
Jankutė, N. (2016). Analysis of personal income inequality effect on economic growth in the European Union countries: Economic curriculum master's thesis. Advisor prof. dr. Zita Tamašauskienė. Šiauliai University, Department of Economics, 71 p. (87 p.). This master's thesis studies the effect of income inequality on economic growth. The purpose: after having discussed income inequality and economic growth related questions, to analyze theoretically the effect of personal income inequality on economic growth, and to analyse effect of income inequality in terms of economic growth of EU groups of countries with different economic development levels. The first part analyzes discussion issues of effect of income inequality on economic growth. After discussing the income inequality and economic growth concepts, measurement indicators and underlying factors, effect of income inequality on economic growth and main channels of the effect are theoretically analyzed, empirical research review of such effect is made. The second part contains the empirical research process and methodology. In the course of analysis, European Union member states are divided into high and lower development level groups according to 2000 - 2014 GDP per capita. In the analytical part income inequality is measured by the Gini index, income distribution in the first and tenth deciles and quintiles at ratio S80/S20. After discussing the dynamics of economic growth and income inequality indicators, by changing the income inequality measurement indicators, four test models in each group of countries are compiled. In order to assess the effect of income inequality on economic growth, these models are used to perform regression analysis in the identified groups of countries. The results showed that effect of personal income inequality on economic growth depends on the level of development of the countries and the income inequality indicator applied. It was found that in the high development level EU countries group, growth of Gini index, income distribution in the tenth decile and S80/S20 index has a positive effect on economic growth, while in the lower development level EU countries group, growth of income inequality has a negative impact on the countries' economic growth. In addition, it was found that the distribution of income in the first decile has no statistically significant effect on economic growth.
Jankutė, N. (2016). Analysis of personal income inequality effect on economic growth in the European Union countries: Economic curriculum master's thesis. Advisor prof. dr. Zita Tamašauskienė. Šiauliai University, Department of Economics, 71 p. (87 p.). This master's thesis studies the effect of income inequality on economic growth. The purpose: after having discussed income inequality and economic growth related questions, to analyze theoretically the effect of personal income inequality on economic growth, and to analyse effect of income inequality in terms of economic growth of EU groups of countries with different economic development levels. The first part analyzes discussion issues of effect of income inequality on economic growth. After discussing the income inequality and economic growth concepts, measurement indicators and underlying factors, effect of income inequality on economic growth and main channels of the effect are theoretically analyzed, empirical research review of such effect is made. The second part contains the empirical research process and methodology. In the course of analysis, European Union member states are divided into high and lower development level groups according to 2000 - 2014 GDP per capita. In the analytical part income inequality is measured by the Gini index, income distribution in the first and tenth deciles and quintiles at ratio S80/S20. After discussing the dynamics of economic growth and income inequality indicators, by changing the income inequality measurement indicators, four test models in each group of countries are compiled. In order to assess the effect of income inequality on economic growth, these models are used to perform regression analysis in the identified groups of countries. The results showed that effect of personal income inequality on economic growth depends on the level of development of the countries and the income inequality indicator applied. It was found that in the high development level EU countries group, growth of Gini index, income distribution in the tenth decile and S80/S20 index has a positive effect on economic growth, while in the lower development level EU countries group, growth of income inequality has a negative impact on the countries' economic growth. In addition, it was found that the distribution of income in the first decile has no statistically significant effect on economic growth.
Public welfare, reducing social and income exclusion are the most relevant topics of social studies to date. There has been studies around the world that provides a deeper understanding of the interaction of a country's economic status with the well-being of its population. Because each country, its citizens are unique, the results of subjective well-being research are country-specific and cannot be extended to other countries. The aspiration of the welfare state in Lithuania was started to emphasize recently. After Lithuania's accession to the European Union, Lithuania began to follow the example of more developed countries. Reducing income inequality became one of the most important tasks in ensuring prosperity, it led to more research on subjective well-being and income inequality. Although there are studies in the world examining the interaction between economic growth, income inequality and subjective well-being, there is a lack of similar studies analyzing Lithuania's indicators. Compared to other European Union countries, income inequality in Lithuania is one of the largest, and subjective well-being is below the EU average. Thus, this project seeks to elucidate how changes in Lithuania's economic growth and income inequality interact with changes in subjective well-being. Lithuania's economic growth is rapid since 2009, so the question is, how does it affect income inequality and the subjective well-being of lithuanian people? The object of this research is the interactions of economic growth, income inequality and subjective well-being in Lithuania in the period of 2009–2019. The aim is to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. The tasks of the study are to examine the aspects of economic growth, income inequality, and subjective well-being; to compare Lithuania's economic growth, income inequality and subjective welfare indicators with other European countries; to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. Methods of this research are analysis of scientific literature, legal documents and information sources, as well as quantitative analysis of international surveys and statistical data. The research results revealed that the economic growth in Lithuania in the periodo f 2009-2019 was accompanied by a volatile change in income inequality, and the subjective well-being of the population increased significantly during the same period. After a comparative analysis with the other European countries, it was established that Lithuania's economy grew faster during 2009–2019 than in many other EU countries. It was found that income inequality in Lithuania in 2009 and 2019 were among the highest compared to other EU countries. It was revealed that subjective well-being in Lithuania is lower than in many EU countries and lags behind the EU average. The study found that the consistent growth of GDP and life satisfaction recorded in Lithuania in the period of 2009-2019 indicates that in Lithuania there is a connection between economic development and the subjective well-being of the population. Correlation between decrease in income inequality and happiness growth occured during the periods of 2011–2013 and 2017–2019. During this research it was established that objective indicators of GDP growth correlated to a certain level and consistently with the subjective assessments of the country's economic situation. The results of the study revealed that in Lithuania in the period of 2009–2019, economic growth unequally affected income inequality and the subjective well-being of the population. However, the results obtained during the study show that in the period of 2009–2019, there was a certain significant and positive relationship between Lithuania's economic growth, changes in income inequality and changes in subjective well-being indicators. Project consists of summary in lithuanian and english, lists of tables and pictures, introduction, 3 parts, conclusion, lists of used literature and information sources. Project consists of 65 pages, 6 tables, 27 pictures. Used literature and information sources lists consist of 129 sources.
Public welfare, reducing social and income exclusion are the most relevant topics of social studies to date. There has been studies around the world that provides a deeper understanding of the interaction of a country's economic status with the well-being of its population. Because each country, its citizens are unique, the results of subjective well-being research are country-specific and cannot be extended to other countries. The aspiration of the welfare state in Lithuania was started to emphasize recently. After Lithuania's accession to the European Union, Lithuania began to follow the example of more developed countries. Reducing income inequality became one of the most important tasks in ensuring prosperity, it led to more research on subjective well-being and income inequality. Although there are studies in the world examining the interaction between economic growth, income inequality and subjective well-being, there is a lack of similar studies analyzing Lithuania's indicators. Compared to other European Union countries, income inequality in Lithuania is one of the largest, and subjective well-being is below the EU average. Thus, this project seeks to elucidate how changes in Lithuania's economic growth and income inequality interact with changes in subjective well-being. Lithuania's economic growth is rapid since 2009, so the question is, how does it affect income inequality and the subjective well-being of lithuanian people? The object of this research is the interactions of economic growth, income inequality and subjective well-being in Lithuania in the period of 2009–2019. The aim is to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. The tasks of the study are to examine the aspects of economic growth, income inequality, and subjective well-being; to compare Lithuania's economic growth, income inequality and subjective welfare indicators with other European countries; to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. Methods of this research are analysis of scientific literature, legal documents and information sources, as well as quantitative analysis of international surveys and statistical data. The research results revealed that the economic growth in Lithuania in the periodo f 2009-2019 was accompanied by a volatile change in income inequality, and the subjective well-being of the population increased significantly during the same period. After a comparative analysis with the other European countries, it was established that Lithuania's economy grew faster during 2009–2019 than in many other EU countries. It was found that income inequality in Lithuania in 2009 and 2019 were among the highest compared to other EU countries. It was revealed that subjective well-being in Lithuania is lower than in many EU countries and lags behind the EU average. The study found that the consistent growth of GDP and life satisfaction recorded in Lithuania in the period of 2009-2019 indicates that in Lithuania there is a connection between economic development and the subjective well-being of the population. Correlation between decrease in income inequality and happiness growth occured during the periods of 2011–2013 and 2017–2019. During this research it was established that objective indicators of GDP growth correlated to a certain level and consistently with the subjective assessments of the country's economic situation. The results of the study revealed that in Lithuania in the period of 2009–2019, economic growth unequally affected income inequality and the subjective well-being of the population. However, the results obtained during the study show that in the period of 2009–2019, there was a certain significant and positive relationship between Lithuania's economic growth, changes in income inequality and changes in subjective well-being indicators. Project consists of summary in lithuanian and english, lists of tables and pictures, introduction, 3 parts, conclusion, lists of used literature and information sources. Project consists of 65 pages, 6 tables, 27 pictures. Used literature and information sources lists consist of 129 sources.
Public welfare, reducing social and income exclusion are the most relevant topics of social studies to date. There has been studies around the world that provides a deeper understanding of the interaction of a country's economic status with the well-being of its population. Because each country, its citizens are unique, the results of subjective well-being research are country-specific and cannot be extended to other countries. The aspiration of the welfare state in Lithuania was started to emphasize recently. After Lithuania's accession to the European Union, Lithuania began to follow the example of more developed countries. Reducing income inequality became one of the most important tasks in ensuring prosperity, it led to more research on subjective well-being and income inequality. Although there are studies in the world examining the interaction between economic growth, income inequality and subjective well-being, there is a lack of similar studies analyzing Lithuania's indicators. Compared to other European Union countries, income inequality in Lithuania is one of the largest, and subjective well-being is below the EU average. Thus, this project seeks to elucidate how changes in Lithuania's economic growth and income inequality interact with changes in subjective well-being. Lithuania's economic growth is rapid since 2009, so the question is, how does it affect income inequality and the subjective well-being of lithuanian people? The object of this research is the interactions of economic growth, income inequality and subjective well-being in Lithuania in the period of 2009–2019. The aim is to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. The tasks of the study are to examine the aspects of economic growth, income inequality, and subjective well-being; to compare Lithuania's economic growth, income inequality and subjective welfare indicators with other European countries; to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. Methods of this research are analysis of scientific literature, legal documents and information sources, as well as quantitative analysis of international surveys and statistical data. The research results revealed that the economic growth in Lithuania in the periodo f 2009-2019 was accompanied by a volatile change in income inequality, and the subjective well-being of the population increased significantly during the same period. After a comparative analysis with the other European countries, it was established that Lithuania's economy grew faster during 2009–2019 than in many other EU countries. It was found that income inequality in Lithuania in 2009 and 2019 were among the highest compared to other EU countries. It was revealed that subjective well-being in Lithuania is lower than in many EU countries and lags behind the EU average. The study found that the consistent growth of GDP and life satisfaction recorded in Lithuania in the period of 2009-2019 indicates that in Lithuania there is a connection between economic development and the subjective well-being of the population. Correlation between decrease in income inequality and happiness growth occured during the periods of 2011–2013 and 2017–2019. During this research it was established that objective indicators of GDP growth correlated to a certain level and consistently with the subjective assessments of the country's economic situation. The results of the study revealed that in Lithuania in the period of 2009–2019, economic growth unequally affected income inequality and the subjective well-being of the population. However, the results obtained during the study show that in the period of 2009–2019, there was a certain significant and positive relationship between Lithuania's economic growth, changes in income inequality and changes in subjective well-being indicators. Project consists of summary in lithuanian and english, lists of tables and pictures, introduction, 3 parts, conclusion, lists of used literature and information sources. Project consists of 65 pages, 6 tables, 27 pictures. Used literature and information sources lists consist of 129 sources.
Public welfare, reducing social and income exclusion are the most relevant topics of social studies to date. There has been studies around the world that provides a deeper understanding of the interaction of a country's economic status with the well-being of its population. Because each country, its citizens are unique, the results of subjective well-being research are country-specific and cannot be extended to other countries. The aspiration of the welfare state in Lithuania was started to emphasize recently. After Lithuania's accession to the European Union, Lithuania began to follow the example of more developed countries. Reducing income inequality became one of the most important tasks in ensuring prosperity, it led to more research on subjective well-being and income inequality. Although there are studies in the world examining the interaction between economic growth, income inequality and subjective well-being, there is a lack of similar studies analyzing Lithuania's indicators. Compared to other European Union countries, income inequality in Lithuania is one of the largest, and subjective well-being is below the EU average. Thus, this project seeks to elucidate how changes in Lithuania's economic growth and income inequality interact with changes in subjective well-being. Lithuania's economic growth is rapid since 2009, so the question is, how does it affect income inequality and the subjective well-being of lithuanian people? The object of this research is the interactions of economic growth, income inequality and subjective well-being in Lithuania in the period of 2009–2019. The aim is to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. The tasks of the study are to examine the aspects of economic growth, income inequality, and subjective well-being; to compare Lithuania's economic growth, income inequality and subjective welfare indicators with other European countries; to determine how the change of Lithuania's income inequality, subjective well-being and economic growth was related in the period of 2009–2019. Methods of this research are analysis of scientific literature, legal documents and information sources, as well as quantitative analysis of international surveys and statistical data. The research results revealed that the economic growth in Lithuania in the periodo f 2009-2019 was accompanied by a volatile change in income inequality, and the subjective well-being of the population increased significantly during the same period. After a comparative analysis with the other European countries, it was established that Lithuania's economy grew faster during 2009–2019 than in many other EU countries. It was found that income inequality in Lithuania in 2009 and 2019 were among the highest compared to other EU countries. It was revealed that subjective well-being in Lithuania is lower than in many EU countries and lags behind the EU average. The study found that the consistent growth of GDP and life satisfaction recorded in Lithuania in the period of 2009-2019 indicates that in Lithuania there is a connection between economic development and the subjective well-being of the population. Correlation between decrease in income inequality and happiness growth occured during the periods of 2011–2013 and 2017–2019. During this research it was established that objective indicators of GDP growth correlated to a certain level and consistently with the subjective assessments of the country's economic situation. The results of the study revealed that in Lithuania in the period of 2009–2019, economic growth unequally affected income inequality and the subjective well-being of the population. However, the results obtained during the study show that in the period of 2009–2019, there was a certain significant and positive relationship between Lithuania's economic growth, changes in income inequality and changes in subjective well-being indicators. Project consists of summary in lithuanian and english, lists of tables and pictures, introduction, 3 parts, conclusion, lists of used literature and information sources. Project consists of 65 pages, 6 tables, 27 pictures. Used literature and information sources lists consist of 129 sources.
Income inequality still is a sensitive topic in the Lithuanian economy. Lithuania, according to the indicators of income inequality, still is at the bottom of European Union even though the situation is improving. In recent years, the main way to solve the problem of income inequality in Lithuania was to change the benefits policy, which is aimed at solving this problem, but no decisions are made to change the tax policy. These decisions are avoided because they are complex, can have a negative impact on other economic factors and, of course, negative public opinion and opposition is avoided.
Income inequality still is a sensitive topic in the Lithuanian economy. Lithuania, according to the indicators of income inequality, still is at the bottom of European Union even though the situation is improving. In recent years, the main way to solve the problem of income inequality in Lithuania was to change the benefits policy, which is aimed at solving this problem, but no decisions are made to change the tax policy. These decisions are avoided because they are complex, can have a negative impact on other economic factors and, of course, negative public opinion and opposition is avoided.
Income inequality still is a sensitive topic in the Lithuanian economy. Lithuania, according to the indicators of income inequality, still is at the bottom of European Union even though the situation is improving. In recent years, the main way to solve the problem of income inequality in Lithuania was to change the benefits policy, which is aimed at solving this problem, but no decisions are made to change the tax policy. These decisions are avoided because they are complex, can have a negative impact on other economic factors and, of course, negative public opinion and opposition is avoided.
Income inequality still is a sensitive topic in the Lithuanian economy. Lithuania, according to the indicators of income inequality, still is at the bottom of European Union even though the situation is improving. In recent years, the main way to solve the problem of income inequality in Lithuania was to change the benefits policy, which is aimed at solving this problem, but no decisions are made to change the tax policy. These decisions are avoided because they are complex, can have a negative impact on other economic factors and, of course, negative public opinion and opposition is avoided.
The goal of this paper – to suggest a methodology and evaluate the impact of globalization on income inequality in Europe Union countries during period 1995-2011. The first part of the paper deals with theoretical aspects of relationship between globalization and unequal income distribution, as well as analyzes quantitative methods of measuring globalization and income inequality. In the second part, the analysis of factors and indexes of globalization and income inequality is made within Europe Union countries during period 1995-2011. The methodology of empirical research is presented, as well as hypotheses with respect to the goal of the paper. In the third part results are represented and analyzed. The recommendations are made: firstly, methodological ones for the future researches in the analogic topic, secondly, economic ones with a purpose of reducing income inequality. The empirical results showed that research and development increases income inequality as well as international trade, while democracy reduces the level of unequal income distribution.