Impact of Income Distribution on Social and Economic Well-Being of the State

Yuriy Bilan, Halyna Mishchuk, Natalia Samoliuk and Halyna Yurchyk
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Halyna Mishchuk: Department of Human Resources and Entrepreneurship, National University of Water and Environmental Engineering, Soborna 11, 33-028 Rivne, Ukraine
Natalia Samoliuk: Department of Human Resources and Entrepreneurship, National University of Water and Environmental Engineering, Soborna 11, 33-028 Rivne, Ukraine
Halyna Yurchyk: Department of Human Resources and Entrepreneurship, National University of Water and Environmental Engineering, Soborna 11, 33-028 Rivne, Ukraine

Sustainability, 2020, vol. 12, issue 1, 1-15

Abstract: Income distribution can cause large-scale transformations in human resources structure, essential changes of economic outputs via its impact on life satisfaction and motivation of work. Thus, the overall objective of this research is to improve methodological tools of income distribution analysis based on identifying the links between different structural indicators of income inequality and the most essential features of social and economic well-being. We conducted comparative analysis of EU Member States and Ukraine. We used structural analysis based on two forms of income distribution—functional (share of “labour” in Gross domestic product - GDP) and household one (ratio of incomes measured by special decile coefficients) to identify income inequality and inconsistencies in distributive strategies. By grouping European countries according to economic well-being (described as GDP per capita) and inequality in income distribution (based on Gini coefficient), we determined apparent tendencies in distributive policies and revealed links between income distribution and connected social-economic features of well-being. We conclude that countries with the most stable and clear patterns in income distribution have distinct connections between the share of labour costs in GDP and successes in social and economic spheres, including human development level, property rights protection, GDP growth, possibilities for taxation and budgeting of social programmes.

Keywords: income distribution; income inequality; GDP per capita; human development; well-being (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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