INCOME DISPERSION DYNAMICS IN THE EUROPEAN UNION AFTER THE GLOBAL FINANCIAL CRISIS

Dejan T. Šuškavčević; Milica Popović; Svetlana Marković

doi:10.59864/Oditor52601DS

Authors

Dejan T. Šuškavčević Panto distribucija, Belgrade, Serbia Author https://orcid.org/0009-0006-9326-1972
Milica Popović College of Vocational Studies for Management and Business Communications professor, Faculty of Applied Sciences Author https://orcid.org/0000-0002-5783-671X
Svetlana Marković , Faculty of Economics and Judiciary in Novi Sad, University Business Academy in Novi Sad Author https://orcid.org/0000-0003-2776-6519

DOI:

https://doi.org/10.59864/Oditor52601DS

Keywords:

income dispersion, sigma-convergence, European Union, economic growth, global financial

Abstract

This study examines the dynamics of income dispersion among European Union member states during the post-crisis decade. Focusing on the period from 2010 to 2019, the analysis investigates whether income differences across EU economies narrowed in the aftermath of the global financial crisis. Using annual data for 27 EU member states, we evaluate sigma-convergence by tracking the evolution of cross-sectional dispersion in real GDP per capita. The results indicate a statistically significant decline in income dispersion over the examined period, suggesting the presence of sigma-convergence. However, complementary panel estimations do not provide evidence of conditional beta-convergence once structural controls are included. These findings imply that the observed reduction in dispersion may reflect broader macroeconomic adjustment mechanisms rather than systematic catch-up growth among lower-income member states. The results contribute to the literature on European integration by highlighting the distinction between dispersion

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