Authors: E.Yu. Dotsenko, E.S. Bogdanova

Title of the article: Socio-economic consequences of income differentiation and possible measures to reduce it

Year: 2026, Issue: 1, Pages: 11-18

Branch of knowledge: 5.2.1 Economics

Index UDK: 338.22

DOI: 10.26730/2587-5574-2026-1-11-18

Abstract: Income inequality serves not only as an economic indicator of well-being but also as a crucial sociological marker, determining the position of an individual or social group within the hierarchical structure of society. In a market economy, income level becomes a key criterion for access to resources, opportunities, and symbolic capital, influencing mobility, self-identification, and the degree of inclusion in social processes. Social inequality in income not only reflects differences but also actively reproduces them, forming stable strata – layers with different levels of life prospects. This article examines the consequences of income inequality and the possibilities for overcoming it. Inequality undermines trust in institutions, reduces consumption, limits investment in human capital, and contributes to brain drain. A review of public policy and international experience (Sweden, Germany, China) has shown that effectively reducing inequality is only possible with institutional maturity, a developed tax system, and a strategic approach to social support. Solving the problem requires not only redistributive measures, but also a reformatting of socio-economic policies towards justice, equality of opportunity, and support for human capital.

Key words: income differentiation social stratification socioeconomic inequality mechanisms for reducing income inequality

Receiving date: 09.01.2026

Approval date: 28.01.2026

Publication date: 12.03.2026

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