Examining the relationships between income inequalities and different dimensions of well-being in selected Central Eastern European (CEE) countries.

Małgorzata Szczepaniak,Andrzej Geise,László Vasa

doi:10.1371/journal.pone.0250469

Małgorzata Szczepaniak, Andrzej Geise + Show 1 more

Open Access

https://doi.org/10.1371/journal.pone.0250469

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Journal: PloS one	Publication Date: Apr 28, 2021
Citations: 1	License type: CC BY 4.0

Affiliation: Nicolaus Copernicus University

Abstract

This article examines the relationships between different dimensions of well-being and income inequalities across selected Central Eastern European countries after joining the European Union in 2004. Regarding the multivariety of well-being concept, it explores its 5 dimensions (material dimension, health dimension, education dimension, environmental dimension, happiness). Accounting for the interactions between dimensions of well-being matters for the inequalities, we conducted an in-depth analysis by adopting PMG estimation and panel ARDL model to assess the short-run and long-run links between variables. The results of conducted analysis allowed us to identify the canals through which income inequalities are linked directly or indirectly with the particular dimensions of well-being. In the long run, all the dimensions of well-being significantly affected income inequalities, and income inequality shaped material dimension, health, education, natural environment, and happiness. However, in the short run, the only dimension that shaped income inequalities was education. Income inequalities directly affected both health dimension and happiness.

Highlights

Well-being is a multidimensional phenomenon [1, 2] that requires consideration of many dimensions of well-being, which are beyond the standard of living concept [3]
This article aims to identify the links among unequal distribution of income and 5 dimensions of well-being
We use the term “well-being” in the sense of overall condition that consists of 5 dimensions

Summary

Introduction

Well-being is a multidimensional phenomenon [1, 2] that requires consideration of many dimensions of well-being, which are beyond the standard of living concept [3]. The analysis of well-being should explore, among others, objective dimensions, such as material, health, education, and environmental [4]. To provide a more holistic measure of wellbeing, subjective well-being, as measured by overall life satisfaction or happiness, should be included when social progress is measured [5, 6]. Income inequalities may have important consequences in many spheres of life, beyond the obvious monetary dimension, above all with regard to social cohesion [7].

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