Abstract

CRUZ MARCELO, José Nabor. INCOME DISTRIBUTION AND POVERTY AS OBSTACLES TO THE RECOVERY OF THE CRISIS IN THE EUROPEAN UNION. rev.relac.int.estrateg.segur. [online]. 2015, vol.10, n.1, pp.135-158. ISSN 1909-3063.

This article shows how the income inequality has generated intense debate not only in economic theory but also in the social sciences, since it is considered essential improvement in perceptions of income to generate economic and social welfare. Thus, through three indicators, the Gini coefficient, the share of wages in GDP and an index of income concentration evolution of alternative analyzes income distribution in the countries of the European Union (EU) during the period 1995-2012. In addition, economic scenarios are simulated through an algebraic model that is based on Monte-Carlo method, the effects of some alternative strategies for Public Policy that can be held in the European Union to address the economic downturn and improve social inequality. It is found that while demand shocks do not apply in the economy, the economic downturn will continue, and the reduced purchasing power of wages in the EU. This constitutes factors influencing social discontent and protest which consequently will impact on the security and development of the European economies

Keywords : Crisis; Income Distribution; Social Security; Wages.

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