Abstract

Purpose: The aim of this study is to show how the concentrations of primary income
can be related to the labour market structure in two samples of selected European
and transition countries. Then it focuses on the differences in the transitional path of
Poland and Russia that justify the current divergences in the distribution of income
in these two countries.

Methodology: This research, in its empirical part, is based on cluster analysis and
principal component analysis (PCA). By these techniques, the study defines which
main factors of the labour market are more involved in the distribution process in
the selected countries.

Findings: On the basis of the data used, it seems possible to establish a relationship
between different labour market models and the degree of primary income inequality,
focusing on which variables are more relevant with respect to the different
labour market systems.

Originality: This research deals with the aspect of the concentration of primary
income in different economies with cluster and principal component analyses, considering
the shortage of related economic data in this field of research.

Keywords