Abstract
The presented article uses the method of non-weighted average absolute deviation for expressing income inequality in 11 selected Central and Eastern European Countries. Specifically, the analysis of income inequality is done for Poland, the Czech Republic, the Slovak Republic, Austria, Slovenia, Hungary, Romania, Bulgaria, Latvia, Lithuania and Estonia. Based on the determination of income inequality in the article an analysis is made concerning the development of income inequality, including the subsequent inter-regional comparison in the context of the degree of income inequality in a given human society and economy. The text of this article is organized in 4 parts, after Introduction follows the analytic chapter where, primarily, the method of non-weighted average absolute deviation is explained. The third part contains the empirical analysis of income inequality, and the Conclusion highlights some major conclusions of detailed analysis made in Chapter 3. The analysis of income distribution of 11 European households between years 2005-2013 and its order is made in deciles basing on empirical data from the Statistics on Living Conditions and Welfare published by Eurostat.
Highlights
Income inequality was and is a natural part of every economy and its society
One of the best known and used measures of income inequality is Gini coefficient and its graphical representation through Lorenz curve. It could be supplemented by Robin Hood Index and S80/S20 Ratio, which are used as other methods of comparison of income inequality (Turečková & Kotlánová, 2014b, pp. 1063-1057)
Empirical analyses were made on the basis of the share of national equivalised income of 11 Central and Eastern European countries household’s data from Eurostat (2015)
Summary
Income inequality was and is a natural part of every economy and its society. Income inequality, in essence, means that different people or different groups of people will reach different income, and this income dispersion determines how much the great range of individual income in society at the economy is (Turečková & Kotlánová, 2014a, pp. 240-247). Despite the fact that this indicator could reach a relatively large value, it does not predicate differences of incomes in society. Another indicator we could hear about very often is the average wage. One of the best known and used measures of income inequality is Gini coefficient and its graphical representation through Lorenz curve. It could be supplemented by Robin Hood Index and S80/S20 Ratio, which are used as other methods of comparison of income inequality It could be supplemented by Robin Hood Index and S80/S20 Ratio, which are used as other methods of comparison of income inequality (Turečková & Kotlánová, 2014b, pp. 1063-1057)
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