STRATIFICATION AND ECONOMIC INEQUALITY: EMPIRICAL EVIDENCE

Abstract

Abstract: The main purpose of the research is to analyse the links between stratification and various forms of inequality, to identify the role of economic inequality in social stratification and forming the middle class in the context of the Republic of Moldova. The study is based on the Household budget survey data of the National Bureau of Statistics for the years 2011-2016. The analysis of the statistical data shows that despite the economic growth during the last years in the Republic of Moldova, the economic inequality is still high and is based on unequal distribution of goods and services, polarizing the society in a large number of poor population and a very small number of rich people, the middle class being only in the incipient phase of formation. The economic inequality is manifested through discrepancies between different regions, urban and rural areas, gender, age groups, family sizes etc. To reduce the economic inequality we need an integrated approach based on redistribution of income through progressive taxation (the richest people pay higher income taxes than the poor ones); development and implementation of inclusive social policies for increasing the access to mainstream and social services of the most disadvantaged groups of population, and increasing the social responsibilities of companies regarding the living standards and quality of life of their employeesNote: UDC: 316.34