About the project

Income inequality and poverty are complex and multidimensional phenomena that hinder economic growth and adversely affect overall well-being, making them not only economic but also broader societal challenges. Existing research does not provide a clear consensus either on their underlying causes or on the direction of the effects of potential determinants, largely due to the intrinsic complexity of these phenomena and methodological challenges such as omitted variable bias or excessive model parameterization.

This project employs advanced econometric methods based on Bayesian statistics, which are well suited for analysing a large number of potential determinants. The research will examine relevant factors across European Union member states and investigate the nature of their relationship with income inequality and poverty. The objective is to contribute new insights to the existing literature on the determinants of inequality and poverty and to potentially inform the design of more effective national and European policies aimed at their reduction.

Total project value: 60.000,00 EUR

Project duration: October 1, 2025 until September 30, 2029

Project holder: University of Zagreb, Faculty of Economics & Business

Contact

Project leader: Associate Professor Ivan Novak

E-mail: inovak1@net.efzg.hr

Address: Faculty of Economics & Business – Zagreb

     Trg J. F. Kennedyja 6

     10000 Zagreb, CROATIA