The influence of the economic cycle on Eurozone cross-country inequality dynamics

Ivan Rubinic, Maks Tajnikar


The cyclical influence on inequality is investigated using the model formulated from the theory of unequal labour exchange, based on disequilibrium prices, capital-labour ratios, efficiencies, disequilibrium factor incomes, and exploitation. Empirical employment of the abovementioned categories allowed for clustering Eurozone countries according to corresponding trends. Findings indicated countrylevel differentiability regarding the utilisation of cyclical advantages. Since the countries did not share a cycle tendentially, a consequential asymmetrical benefit distribution caused divergence and cross-country inequality. The implications of these conclusions are acute for Eurozone sustainability, which must revise its flawed economic foundations with built-in destabilisers that divide its members and oppose the goals of effective single market integration.


economic inequality; economic cycles; unequal labour exchange; E3; F44; F02

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