Labour and capital in generation of inequality within the European Union – sectoral aspects

Authors

  • Magdalena Cyrek University of Rzeszów

DOI:

https://doi.org/10.15584/nsawg.2017.2.29

Keywords:

income inequality, wage inequality, labour, capital, branches

Abstract

The study presents results of research on sectoral aspects of inequality between the EU countries in a period 2004–2013. A special attention was paid to international disparities in gross value added and earnings in different kinds of economic activity. Relations between indicators of income and wage inequality constituted a base to indicate patterns in capital inequality. Thus, a role of labour and capital in the creation of international inequality in the structural context was identified. Structural differences between the specified economies are an essential condition in the generation of inequality. This remark is supported by the observed differences within the EU in a share of earnings in gross value added between branches. The differences are the strongest in public services and the weakest in real estate and agriculture. Moreover, disaggregation of inequality into inter and between branch differences suggests an increasing influence of structural differences on the creation of inequality. This conclusion is especially important concerning capital. Tendencies in income and wage inequality in the EU prove that capital has a differentiating character, while engagement of labour has an equalizing influence. Considering branch aspects it is possible to point out that the most dynamic kinds of activity are specified by especially high income inequality and clearly lower wage inequality. It once more indicates tendencies to strengthen a role of capital in the generation of disparities in the EU. Capital creates the strongest inequality mainly in finance and insurance and information and communication services. On the other hand, wage inequality is an essential problem concerning traditional kinds of activity, such as agriculture and construction.

Published

2020-11-13

How to Cite

Cyrek, M. (2020). Labour and capital in generation of inequality within the European Union – sectoral aspects. Social Inequalities and Economic Growth, 2(50), 427–442. https://doi.org/10.15584/nsawg.2017.2.29

Issue

Section

Articles