Danubius International Conferences, 16th International Conference on European Integration - Realities and Perspectives
Linking Inequality and Economic Growth from a Consumer Perspective
Last modified: 2021-03-24
Abstract
The paper aims to provide a study of income redistribution on the impact that economic growth has to the individual welfare. It will add a contribution from the Albanian reality in the debate about the impact of inequality in economic growth and poverty. For years, the effect of inequality has been considered, from some economist as a promoter of social problems and lack of personal right to equality. Other economists have considered the redistribution of incomes as a negative factor that can reduce incentives to investments and productivity. Nowadays there is enough evidence to show that increasing inequality, not only reduces the well-being of a large part of society, but also lead to a deterioration of the economic stability. The paper uses a set of data about the consumption expenditures of Albanian households to explore the inequality indicators and a decomposition approach to identify the impact of inequality to the economic growth and the individual welfare.
