THE EFFECTS OF PRODUCTIVITY, INVESTMENT, AND TAXES ON LOW WAGE EARNERS ON INCOME DISTRIBUTION INEQUALITY

This paper deals with effect of total investment, taxes on low wage earners, and GDP on income distribution inequality. The sample consists of five countries, Greece, Portugal, Ireland, Germany, and the UK, and ranges from 1997 to 2008. Panel analysis and granger causality effects are used in order to reach our findings. Results show that growth of GDP and total investment result in an increase of income distribution inequality, with Germany and the UK suffering more from this effect