The Influence of the Economic Cycle on Eurozone Cross-Country Inequality Dynamics

Ivan Rubinic and Maks Tajnikar
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Ivan Rubinic: University of Rijeka, Republic of Croatia
Maks Tajnikar: University of Ljubljana, Slovenia

South-Eastern Europe Journal of Economics, 2019, vol. 17, issue 2, 267-290

Abstract: The cyclical influence on inequality is investigated using the model formulated from the theory of unequal labour exchange, based on disequilibrium prices, capital-labour ratios, efficiencies, disequilibrium factor incomes, and exploitation. Empirical employment of the abovementioned categories allowed for clustering Eurozone countries according to corresponding trends. Findings indicated country-level differentiability regarding the utilisation of cyclical advantages. Since the countries did not share a cycle tendentially, a consequential asymmetrical benefit distribution caused divergence and cross-country inequality. The implications of these conclusions are acute for Eurozone sustainability, which must revise its flawed economic foundations with built-in destabilisers that divide its members and oppose the goals of effective single market integration.

Keywords: Economic Inequality; Economic Cycles; Unequal Labour Exchange (search for similar items in EconPapers)
JEL-codes: E3 F02 F44 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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