The inequality of income distribution in the Republic of Croatia between 2010 and 2016

This paper analyzes the inequality of income distribution in the Republic of Croatia from 2010 to 2016. Today, in modern countries, people are equal in their democratic and political rights, but there are significant differences in the distribution of income and wealth. On the one hand, inequality in income distribution can stimulate economic development whereas, on the other hand, it can also cause economic damage. In the Republic of Croatia, income inequality is expressed by the Gini coefficient since 2010. Gini coefficient ranges from 0 to 1, with 0 showing complete equality and 1 complete inequality. Another known measure of inequality of income distribution is the income quintile share ratio (S80 / S20), which measures the ratio between the top fifth (20 %) and the lowest fifth (20%) incomes in a country. The purpose of the paper is to give an overview and statistical interpretation of income inequalities using the Gini coefficient and the quintile income ratio, and to analyze European commission recommendations and distribution of income in the Republic of Croatia during the pre-accession negotiations and first years of EU membership.