Mind the Gap - From Divide to Prosperity

Abstract: This thesis investigates the relationship between economic growth and income inequality in the European Union from 1991 to 2019, alongside examining the impact of EU membership on income inequality in Eastern European nations. The theoretical basis of the research is the Kuznets theory, and the study will utilise data from the World Bank’s World Development Indicators and employ a graphical method alongside a regression analysis. The findings reveal a negative relationship between the two variables for the Eastern European countries, the presence of a Kuznets curve in many of the sample nations, and a positive impact of EU membership on income inequality in Eastern European countries. Overall, the thesis deepens our understanding of income inequality dynamics and their drivers in the EU context.