Three firm „pillars“ responsible for social inequality in Serbia

Inequality of income among the poorest and richest people in Serbia is more obvious than in any country of the region, but it is also significantly higher than in all countries of the European Union, a survey on income and living conditions, enforced in Serbia since 2013, has shown.

There are three causes for major social inequality.

The first cause is households with low labour intensity, i.e. unemployed citizens or those who work fewer hours a week.

The second cause is a large gap between employees’ salaries. Earnings significantly contribute to overall inequality, as much as 93 percent, but they are also increasing it year after year.

The third cause lies in economic measures that have been implemented so far.

A decrease in salaries in public sector by 10 percent for all net salaries of those who earn more than RSD25.000 is one of measures that, contrary to expectations, had negative effect on differences in revenues, the study named “Income-based inequality in Serbia”, conducted by a group of professors of Belgrade based Faculty of Economics, shows.

Izvor: N1

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