Military expenditure and income inequality in European NATO Member States

Abstract

The purpose of this investigation was to empirically assess the association between military expenditure and income inequality in the 19 European member states of NATO between 2011 and 2022. To achieve this, the authors carried out multivariate statistical analysis using Kaplan-Meier life tables and survival estimation techniques. The results highlighted a trend in the countries analysed that income inequality tended to decrease when investment in the military increased during the period under consideration. The association manifested itself in the shortest time in the group of countries with the lowest military spending per capita, while emerging in the longer term in the countries with the highest. Furthermore, under high threat of war, the association tends to be shortest in relative terms in countries with the lowest military expenditure per capita. The results also revealed that the association between military spending and income inequality is more pronounced in the smallest countries by population and those with the lowest military expenditure per capita. The authors believe that this investigation will enrich scientific knowledge with new insights.