Towards Social Justice: Investigating the Role of Labor, Globalization, and Governance in Reducing Socio-Economic Inequality within Post-Communist Countries

Abstract

In the midst of contemporary global challenges, including the repercussions of the pandemic, geopolitical conflicts, and transitional shifts, a notable surge in attention toward income inequality has materialized, garnering significant focus from both national and international entities. The urgency surrounding this issue is amplified by the imperative need for economic sustainability, recognizing poverty and inequalities as fundamental global security threats. Particularly within Europe, the persistent disparities in living standards, evident across and within countries, serve as potent indicators of enduring poverty and inequality. These concerns underscore potential barriers to the European Union’s pursuit of convergence and cohesion, aligning with the Sustainable Development Goals (SDGs), which prioritize addressing poverty (SDG 1) and reducing inequalities (SDG 10) for sustainable development. This study aims to scrutinize the dynamics of income inequality, concentrating on post-communist countries in Central and Eastern Europe (CEE). Employing panel data analysis, the research identifies and tests variables influencing income inequality in the region, specifically emphasizing labor market structures, globalization, economic development, and governance mechanisms, which hold particular relevance for the region’s context. The primary findings underscore the potential impact of enhancing these sectors in mitigating income inequality within the specified region. These insights provide a foundation for informed policy-making, presenting opportunities to address and mitigate inequalities effectively. They pave the way for fostering pathways toward greater equality and equitable socio-economic development within post-communist nations, ensuring a more inclusive and sustainable future.