Preliminary communication
https://doi.org/10.3935/rsp.v30i2.1980
The Influence of Labor Market Determinants on Economic Inequality Measured by Gini Coefficient in Montenegro
Nemanja Popović
orcid.org/0009-0003-5686-9362
; University of Montenegro, Faculty of Economics, Podgorica, Montenegro
Milivoje Radović
; University of Montenegro, Faculty of Economics, Podgorica, Montenegro
Jovan Đurašković
orcid.org/0009-0009-0484-1169
; University of Montenegro, Faculty of Economics, Podgorica, Montenegro
Abstract
In this paper an analysis is conducted with the aim of a better understanding how the labour market and income inequality in society are connected, examining the relationships between the variables that describe economic inequality and the labour market in Montenegro. The analysis involves the use of econometric techniques and VAR models, which, with the use of impulse response functions and variance decomposition, best reflect the impact of selected labour market variables on economic inequality. The results of the analysis show that the variables of the labour market, namely the unemployment rate and the long-term unemployment rate, proved to be significant in explaining economic inequality, measured by the Gini coefficient. The results of the research can be useful to various researchers dealing with the issue of economic inequality in Montenegro, providing an additional mechanism for analyzing flows and predicting the future values of the determinants of economic inequality. The results also enable a different approach in the analysis of the labour market and the economic inequality in Montenegrin society, which can serve as a basis for many future analyses.
Keywords
Gini coefficient; labour market; VAR models; inequality
Hrčak ID:
313126
URI
Publication date:
27.12.2023.
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