Browsing by Author "Luo, Yueyuan"

This research investigates the intricate relationship between labour market institutions, in-come inequality, and welfare state typologies. Employing regression analysis, the study examines the influence of employment protection regulation (EPR), the tax wedge, and the unemployment rate on income inequality. The findings demonstrate a significant negative correlation between EPR and income divergence, suggesting that stricter labour protection is associated with reduced income inequality. However, the impact of EPR on inequality is contingent upon the employment rate and specific economic conditions. Surprisingly, a higher tax wedge is found to be linked to lower income inequality, contrary to previous research. The effect of the tax wedge on labour market outcomes varies depending on la-bour market conditions, and progressive taxation can contribute to decreasing income ine-quality. Additionally, the study reveals that the unemployment rate affects income inequali-ty through its interaction with labour market institutions. Countries with high unemploy-ment tend to benefit from stronger labour protection regulations, leading to higher labour market participation rates. Furthermore, the analysis compares different welfare state ty-pologies and their association with income inequality. The findings highlight that social democratic welfare states exhibit relatively low levels of income inequality, while con-servative and liberal welfare states display varying degrees of inequality. This study en-hances our understanding of the complex relationship between labour market institutions, income inequality, and welfare state typologies, underscoring the importance of consider-ing specific economic contexts and employment dynamics when designing labour market policies.