Income Inequality in the Over-Indebted Eurozone Countries and the Role of the Excessive Deficit Procedure
George Petrakos (petrakos@panteion.gr),
Kostas Rontos (k.rontos@soc.aegean.gr),
Luca Salvati (luca.salvati@uniroma1.it),
Chara Vavoura (cvavoura@econ.uoa.gr) and
Ioannis Vavouras (vavouras@panteion.gr)
Additional contact information
George Petrakos: Panteion University of Social and Political Sciences & Director General, Research Institute for Tourism
Kostas Rontos: University of the Aegean
Luca Salvati: Sapienza University of Rome
Chara Vavoura: University of Athens
Ioannis Vavouras: Panteion University of Social and Political Sciences
Open Economies Review, 2024, vol. 35, issue 2, No 5, 322 pages
Abstract:
Abstract The present study identifies economic, political, and institutional variables that influence the distribution of personal incomes in the Eurozone countries facing severe fiscal imbalances, namely Greece, Italy, Portugal, and Spain. Crucially, this paper is the first to investigate the effect of the corrective arm of the Stability and Growth Pact, the so-called Excessive Deficit Procedure (EDP), on the income distribution of the aforementioned economies, where EDP was imposed over a long time period. The empirical results of this study show that (i) EDP impact depends on the specific mix of policy measures undertaken and that (ii) a high public debt does not reflect the existence of common factors shaping income distribution in the four Southern European economies. The share of labor income in total income, constitutes a significant determinant of income inequality. However, we find that the relationship between labor share and income inequality is also country-specific, depending on the intrinsic characteristics of each individual economic system.
Keywords: Fiscal imbalances; Gini coefficient; Income distribution; Labor income; Southern Europe (search for similar items in EconPapers)
JEL-codes: D31 D63 E02 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:
Downloads: (external link)
http://link.springer.com/10.1007/s11079-023-09720-x Abstract (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:35:y:2024:i:2:d:10.1007_s11079-023-09720-x
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2
DOI: 10.1007/s11079-023-09720-x
Access Statistics for this article
Open Economies Review is currently edited by G.S. Tavlas
More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).