Methodology for Assessing Excessive Inequality

The second chapter of monograph presents the methodology for assessing excessive inequality. This methodology aims at establishing the most appropriate criteria for assessing economic inequality including excessive inequality and provides an opportunity to assess the impact of economic inequality on socio-economic progress – growth, quality of life, and sustainability – in the EU-28 and to quantify the break points when excessive economic inequality arises. The approach of structural basis of the socio-economic inequality proposed by the authors consists of three levels. The first level – is the factors that cause economic inequality. The second level highlights a differentiated approach to economic inequality, emphasizing the relationship between normal and excessive inequality. The third level – is the assessment of the impact of economic inequality on the socio-economic progress of EU countries and revealing the breaking points in economic inequality development.