Template-type: ReDIF-Paper 1.0  
Author-Name: Celia Gil-Bermejo Lazo
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI), Universidad Complutense de Madrid.
Author-Name: Jorge Onrubia Fernández
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI), Universidad Complutense de Madrid.
Author-Name: Antonio Jesús Sánchez Fuentes
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI), Universidad Complutense de Madrid.
Title: Inequality and poverty in the European Union: In search of lost dynamics
Abstract: This paper analyses the relationships between income inequality, monetary poverty and economic growth for a sample of 30 European economies over the period 
	2004-2020. To do so, we adopt a novel approach, based on a dynamic analysis that takes into account the variability that can occur in the evolution of these 
	relationships over the period analysed. The proposed panel-VAR model allows us to perform a Granger causality analysis between the variables mentioned. In a second 
	stage, we complete this analysis with the application of the iterative PC algorithm that allows us to interpret the results of the model by defining the corresponding 
	causal graphs. For the empirical analysis we use micro-data from the EU-SILC database for the period 2004-2020. The results obtained show that, for the set of 
	economies analysed, inequality has a positive effect on poverty. Moreover, we also find that this dynamic is reversed, with a double positive causality between these 
	variables. In addition, we do not find evidence of a poverty or inequality reducing effect of economic growth. However, we find that these results differ across 
	countries, depending on the type of welfare state in place.
Keywords: Inequality; Poverty; Economic Growth; Causality; Causal Graphs
Creation-Date: 2022
Length: 30 pages
Number: 2204
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/wpaper22-04.txt
File-URL: https://eprints.ucm.es/id/eprint/76358/1/WP04-22.pdf
File-Format: Application/pdf
File-Function: Full text
Handle: RePEc:ucm:wpaper:2204