Essays on wage and income inequality

Ta praca doktorska szeroko analizuje trendy nierówności płac i dochodów w krajach rozwiniętych, skupiając się na trzech głównych determinantach: 1) wskaźnikach makroekonomicznych, 2) dynamice dystrybucji między segmentami pracy i 3) wpływie różnic płacowych na ogólną nierówność. Składająca się z pięciu esejów obejmuje historyczną ewolucję płac, nierówności płac w Stanach Zjednoczonych, czasowe trendy w krajach rozwiniętych, nierówności na poziomie stanowym w USA oraz związki między inflacją a nierównościami w UE. Wyniki obejmują historyczne wydarzenia wpływające na nierówność płac, dysproporcje w Stanach Zjednoczonych między percentylami dochodowymi, kształtowanie się wzoru S w czasowych trendach, wkłady poszczególnych stanów w nierówność oraz wpływ inflacji na nierówności w UE. Godne uwagi jest niewspółmierne oddziaływanie podatków od sprzedaży na gospodarstwa domowe oraz zróżnicowana skuteczność polityki podatkowej w krajach Europy Zachodniej i Wschodniej. Główne wnioski z pracy doktorskiej podkreślają znaczenie polityki podatkowej w kształtowaniu nierówności. Źle zaprojektowane polityki podatkowe mogą pogorszyć nierówność, a rozwiązanie tego problemu wymaga zidentyfikowania czynników napędzających i wprowadzenia odpowiednich środków podatkowych. Zasada Przekazu Daltona, choć sama w sobie niewystarczająca, podkreśla potrzebę znacznego zwiększenia stawek transferu dla znaczącego zmniejszenia nierówności. Decydentów zachęca się do przeprowadzania kompleksowych analiz i rozważania ukierunkowanych interwencji, podkreślając wagę podejmowania świadomych decyzji.

This dissertation offers a comprehensive analysis of wage and income inequality trends within developed nations. It specifically delves into three key determinants that significantly shape the trajectory and transformation of income distribution: 1) macroeconomic indicators, such as GDP per capita and inflation, 2) the distributional dynamics between affluent and economically disadvantaged labor segments, and 3) the overarching impact of wage disparities on the overall spectrum of inequality. The dissertation comprises a series of five essays, each contributing unique insights to the overarching inquiry. The inaugural essay centers on the historical evolution of wage inequality during the medieval and early modern epochs in Europe. This investigation unearths compelling evidence that pivotal historical events, such as the Black Death and armed conflicts, exerted a notable influence on laborers’ wages. As a result, these events contributed to fluctuations in wage disparity between unskilled and skilled labor cohorts. Additionally, the study unveils the profound repercussions of significant historical occurrences on the distributional dynamics between male and female laborers. The second essay builds upon the theoretical framework established in the preceding essay, employing a comparative approach to scrutinize wage inequality within another developed nation, namely the United States. In this analytical endeavor, the study zeroes in on the spectrum of wage disparity spanning from the highest income earners to the lowest, delineated across quintiles, specifically, the 10th, 25th, 50th, 75th, and 90th percentiles. Within this context, the research brings to the forefront the noteworthy discrepancy in wage growth rates among various segments of the labor force. Specifically, it elucidates the considerable disparity in wage augmentation experienced by distinct groups of workers, with some witnessing substantially swifter wage increases compared to others. Furthermore, the essay underscores the remarkable pace at which the remuneration of capital owners and affluent individuals engaged in the labor market outpaces the broader workforce. This salient observation contributes to a deeper understanding of the driving forces behind the burgeoning income inequality witnessed within the United States. In the third essay, a thorough examination of temporal income and wage inequality trends is conducted across selected developed nations, employing longitudinal datasets and cubic function analysis. The study departs from conventional inverted U-shaped models, revealing an S-shaped pattern. Wage inequality is assessed using Gini coefficients, illuminating key income groups driving inequality. This methodological innovation addresses the knowledge gap in understanding the relationship between economic growth and inequality determinants. Notably, wage inequality decreases post-mid-1990s in countries like Canada, France, and the United States, contrasting with rising income inequality. This underscores the dominant role of top income earners, including capitalists and affluent labor segments, in shaping overall inequality, relative to other income percentiles.The fourth essay explores the intricate relationship between labor and non-labor income in shaping income disparities across U.S. states. Using rigorous analytical methods and econometric techniques with diverse data, it examines how different income groups and wage disparities contribute to overall inequality within each state. The study finds that interstate inequality has a limited impact on overall inequality, emphasizing the need for statespecific policies to address income inequality sources. Simulation results highlight the urgency of implementing redistributive policies, such as transferring 10% of income from the90th to the 10th percentile, to reduce inequality and improve citizens’ quality of life.The last essay investigates the intricate connection between inflation and inequality within the European Union during the period from 1990 to 2019. It focuses on the non-linearaspects of this relationship, identifying critical turning points and highlighting a distinctive U- shaped pattern in the relationship between these two economic indicators. The research yields notable insights: Firstly, it reveals that sales taxes have a disproportionately negative impact on households, exacerbating inequality. Secondly, it underscores the effectiveness of income tax policies in reducing inequality, particularly in Western European nations, while noting their diminished effectiveness in Eastern European countries with lower income tax rates.