Inequality in generated income among the poorest and wealthiest people is more pronounced in Serbia than in any country of the region, but also significantly higher than in all EU countries – a survey on income and living conditions, which has been carried out in Serbia since 2013, shows.
There are three causes of this huge gap in income. Firstly, the problem lies with a high number of households with low labour intensity, meaning those with unemployed people, or those who work fewer hours a week. The second cause is a large gap in the salaries of employees. Earnings significantly contribute to the overall inequality, as much as 93 percent, which has been increasing year-on-year.
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The third reason lies in the current economic measures. Reducing public sector wages by 10 percent, namely all net wages that are over 25,000 dinars, is one of the measures that, contrary to expectations, has had a negative influence on income gap, according to a study called “Income Inequality in Serbia”, which was written by a group of professors from the Faculty of Economics in Belgrade.
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