In the midst of contemporary global challenges, including the repercussions of the pandemic, geopolitical conflicts, and transitional shifts, a notable surge in attention toward income inequality has materialized, garnering significant focus from both national and international entities. The urgency surrounding this issue is amplified by the imperative need for economic sustainability, recognizing poverty and inequalities as fundamental global security threats. Particularly within Europe, the persistent disparities in living standards, evident across and within countries, serve as potent indicators of enduring poverty and inequality. These concerns underscore potential barriers to the European Union’s pursuit of convergence and cohesion, aligning with the Sustainable Development Goals (SDGs), which prioritize addressing poverty (SDG 1) and reducing inequalities (SDG 10) for sustainable development. This study aims to scrutinize the dynamics of income inequality, concentrating on post-communist countries in Central and Eastern Europe (CEE). Employing panel data analysis, the research identifies and tests variables influencing income inequality in the region, specifically emphasizing labor market structures, globalization, economic development, and governance mechanisms, which hold particular relevance for the region’s context. The primary findings underscore the potential impact of enhancing these sectors in mitigating income inequality within the specified region. These insights provide a foundation for informed policy-making, presenting opportunities to address and mitigate inequalities effectively. They pave the way for fostering pathways toward greater equality and equitable socio-economic development within post-communist nations, ensuring a more inclusive and sustainable future.

This study challenges the traditional reliance on GDP as the sole indicator of the success of the EU’s cohesion policy, aligning with the evolving academic discourse that calls for a broader spectrum of metrics incorporating social factors. The research aims to assess the impact of cohesion on economic performance and social progress at the regional level in Central and Eastern European countries, using regression analysis on panel data. Inspired by the call to move beyond GDP-focused assessments, this research re-evaluates cohesion policy within an expanded framework that prioritizes economic and social dimensions. Specifically, it addresses the escalating concerns of income disparity and poverty in Central and Eastern European nations. Utilizing panel data regression models, this study scrutinizes data from 2007 to 2018, covering two recent programming periods, to offer a comprehensive, multifaceted analysis of the impact of cohesion policy. It underscores the policy’s dual role in spurring economic growth and fostering social progress, particularly in mitigating income inequality and reducing poverty. The findings reveal that cohesion policies positively affect both economic performance and social progress, with notable impacts on narrowing the income gap and alleviating poverty in these regions. However, the economic benefits for poverty reduction materialize over a prolonged period, reflecting the gradual nature of policy impact and the time needed for investments to materialize. The study emphasizes the need for a long-term strategic vision in implementing cohesion policies. This includes enhanced data collection, a deeper focus on the social ramifications of policies, streamlined policy processes, capacity building, institutional strengthening, and prioritizing equitable opportunities to bridge income gaps effectively. This comprehensive approach aims to maximize the dual benefits of cohesion policies, promoting balanced economic and social progress across Central and Eastern Europe.

Income inequality has become an increasingly pressing economic and social problem in Europe, especially in emerging countries with more significant inequalities than the EU average. The high-level inequality persistence can decrease well-being by accentuating the shortcomings at the household level, increasing poverty and social exclusion, generating political instability, leading to a decline in social cohesion, and, finally, a weakening of the Union as a whole. In this context, the paper aims to identify the main determinants of income inequality across the CEE countries and their significant implications in supporting the quality of life and well-being, highlighting the mediation and moderation effects. The analysis focuses on emerging European countries, using panel-based data analysis for ten EU countries covering 2008–2019. The empirical findings highlighted the importance of the minimum wage, high-tech exports, the degree of economic openness, the quality of institutions, and education spending in reducing income inequality. On the other hand, the proportion of the population with a higher education level and the interaction between official and unofficial economies led to income inequality. Therefore, to increase the quality of life, it is mandatory to decrease inequalities. Thus, fewer people will be at risk of living a less qualitative life. The empirical results also proved that the informal economy and the share of people employed in industry exhibited mediating roles. In contrast, the economic growth, the urbanization degree, and the share of people employed in services exhibited moderating roles. Additionally, we also tested the impact of the income inequality determinants of the quality of life, the empirical results supporting the influence of minimum wage, employment with tertiary education, government effectiveness, the degree of economic openness, and education expenditures.

This study aims to evaluate the sustainability performance of EU regions through a comprehensive and data-driven Environmental, Social, Governance (ESG) framework, addressing the increasing demand for regional-level analysis in sustainable finance and policy design. Leveraging Partial Least Squares (PLS) regression and cluster analysis, we construct composite ESG indicators that adjust for economic size using GDP normalization and LOESS smoothing. Drawing on panel data from 2010 to 2023 and over 170 indicators, we model the determinants of ESG performance at both the national and regional levels across the EU-27. Time-based ESG trajectories are assessed using Compound Annual Growth Rates (CAGR), capturing resilience to shocks such as the COVID-19 pandemic and geopolitical instability. Our findings reveal clear spatial disparities in ESG performance, highlighting the structural gaps in governance, environmental quality, and social cohesion. The model captures patterns of convergence and divergence across EU regions and identifies common drivers influencing sustainability outcomes. This paper introduces an integrated framework that combines PLS regression, clustering, and time-based trend analysis to assess ESG performance at the subnational level. The originality of this study lies in its multi-layered approach, offering a replicable and scalable model for evaluating sustainability with direct implications for green finance, policy prioritization, and regional development. This study contributes to the literature by applying advanced data-driven techniques to assess ESG dynamics in complex economic systems.

In recent years, the issue of income inequality has ascended to the forefront of national and international agendas, underscored by the urgency to navigate the complexities of market-driven economies without exacerbating social disparities. These challenges are particularly pronounced in the post-communist nations of Central and Eastern Europe, where the transition legacy and the marketization forces present unique dynamics in the evolution of income disparities. This research investigates the intricate mechanisms through which marketization impacts income inequality within the Central and Eastern European countries context, aiming to uncover how economic transformations influenced by global sustainability goals can contribute to narrowing the income gap. By employing panel data estimation techniques and Generalized Method of Moments (GMM) analysis, this study highlights the enduring nature of income disparities and the critical roles played by economic growth, education investment, labor market reforms, globalization, and governance quality in shaping equitable income distributions. Findings reveal that, despite the competitive nature of market economies potentially creating disparities, strategic policy interventions in education, economic policy, and labor market regulations can mitigate the adverse effects of marketization on income inequality. Additionally, this research emphasizes the importance of strong institutional frameworks and the nuanced role of the informal economy in influencing income distribution dynamics.