abstract: 'Relationship between income inequality and economic growth is ambiguous

  one but most mainstream economists view real income increase as a drag

  of economic growth as it leads to higher labor cost, lower

  competitiveness and reduction of employment. In this study we provide an

  alternative view and show that labor income increase may have also

  positive effect on growth. Which of these two effects dominates in a

  particular country depends on institutional and legal environment of

  that country, its macroeconomic conditions and also its economic

  policies. We test empirically two distinct economies - a small, very

  open economy of Slovakia and a large, closed economy of the Euro area.

  We find that in equilibrium, both economies are wage-led on average in

  the period 1993 - 2017 and hence it appears to be beneficial to pursue

  policies that would reduce income inequality.'
affiliation: 'Zeman, J (Corresponding Author), Natl Bank Slovakia, Imricha Karvasa
  1, Bratislava 81305, Slovakia.

  Zeman, Juraj, Natl Bank Slovakia, Imricha Karvasa 1, Bratislava 81305, Slovakia.'
author: Zeman, Juraj
author-email: juraj.zeman@nbs.sk
author_list:
- family: Zeman
  given: Juraj
da: '2023-09-28'
files: []
issn: 0013-3035
journal: EKONOMICKY CASOPIS
keywords: inequality; wage led growth; profit led growth; Slovakia
keywords-plus: DEMAND
language: English
number: '5'
number-of-cited-references: '15'
pages: 459-480
papis_id: 32e1b9f5aa63f7fc5655e6c40b8d5399
ref: Zeman2019incomedistribution
times-cited: '0'
title: 'Income Distribution and Economic Growth: Empirical Results for Slovakia'
type: Article
unique-id: WOS:000473587600001
usage-count-last-180-days: '0'
usage-count-since-2013: '2'
volume: '67'
web-of-science-categories: Economics
year: '2019'