Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327719 
Year of Publication: 
2025
Citation: 
[Journal:] European Journal of Sustainable Development [ISSN:] 2239-5938 [Volume:] 14 [Issue:] 4 [Publisher:] European Centre of Sustainable Development [Place:] Rome [Year:] 2025 [Pages:] 157-165
Publisher: 
European Centre of Sustainable Development, Rome
Abstract: 
This paper aims to analysethe influence of institutional quality on income inequality across the 27 EU Member States during the period 2011-2022. To achieve this, we employed the Panel Estimated Generalized Least Squares (EGLS) method. Our findings demonstrate that enhancing institutional quality-measured through key institutional factors published by the World Bank under the Good Governance Indicators, such as political stability, regulatory quality, and government efficiency -plays a significant role in reducing income inequality. Furthermore, the study confirms a strong positive correlation between the unemployment rate and income inequality, with additional social factors, such as early school leavers and housing cost overburden, that further exacerbate inequality. Conversely, an increase in government spending on social protection appears to mitigate these disparities. Additionally, we identify a strong inverse relationship between income inequality and human development. The robustness of our model has been validated, reinforcing confidence in the reliability of the estimated parameters and the study’s overall conclusions.
Subjects: 
Institutions
Human Development
Income Inequality
Government Efficiency
Political Stability
Regulatory Quality
JEL: 
D63
E02
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article
Document Version: 
Published Version
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