Institutions and income inequality in transition economies

The paper investigates the impact of institutions on the income disparities of the countries with economies in transition in the period from 1993 to 2015. On the basis of in-depth analysis of foreign and domestic literature examines the causes and consequences of inequality, and the relationship of institutions with inequality. The study revealed the following: first, inequality is associated with institutional quality in a particular environment, and secondly, revealed that the greatest impact on inequality have political institutions. They lead to the redistribution of power in favor of the rich segment of the population and, therefore, increasing inequality among the countries studied.