European Journal of Business Science and Technology 2020, 6(2):100-112 | DOI: 10.11118/ejobsat.2020.007

Institutional Quality and Income Inequality: Evidence from Post-Soviet Countries

Radek Náplava1
1 Mendel University in Brno, Czech Republic

This paper focuses on identifying the relationship between institutional quality and income inequality in chosen post-Soviet countries during the period 2002–2017. Using panel analysis is found a nonmonotonic relationship between institutional quality and income inequality. Increasing institutional quality is associated with growing income inequality, but only to a certain extent; from a certain level, higher institutional quality leads to a reduction in income inequality. The growing institutional quality leads to a deepening of income inequality between the richest social class compared to the poorest and middle class. Role in this process plays a particular regulatory quality, which – as it seems – favors the upper 20%.

Keywords: institutional quality, income distribution, income inequality, middle class
JEL classification: O15, P48

Received: November 24, 2020; Revised: November 24, 2020; Accepted: December 7, 2020; Published: December 29, 2020  Show citation

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Náplava, R. (2020). Institutional Quality and Income Inequality: Evidence from Post-Soviet Countries. European Journal of Business Science and Technology, 6(2), 100-112. doi: 10.11118/ejobsat.2020.007
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