Unequal by age and household type: income inequality and demographic aging in Central and Eastern Europe

Abstract This study investigates the impact of demographic aging on income inequality in Central and Eastern European (CEE) states in 2005 and 2022. Using EU-SILC data, the analysis examines income disparities through the lenses of age and household type, exploring differences between CEE post-socialist liberal and corporatist welfare state typologies. The results highlight growing income disparities across age groups and household types, with elderly-headed households consistently recording lower incomes, particularly in the case of single-person elderly households, which may reflect the effects of demographic aging. Conversely, multi-generational households mitigate inequality, offering more economic stability in both CEE liberal and corporatist states. The findings reveal significant variations between post-socialist welfare state typologies. Liberal post-socialist states, such as Estonia, Latvia, and Lithuania, exhibit higher overall inequality, whereas corporatist states, including Poland, Czechia, and Slovakia, demonstrate lower disparities. However, inequality among elderly households has risen in both typologies, with pronounced challenges in addressing the vulnerabilities of single-person elderly households. This study contributes to the neo-familial perspective, emphasizing the role of families and households in mitigating economic vulnerabilities, particularly in aging societies. The results underline the need for targeted policies, including strengthening redistributive pensions, incentivizing family caregiving, and supporting multi-generational living arrangements to reduce inequalities exacerbated by demographic shifts. These insights inform policymakers seeking to balance demographic challenges with economic equity in rapidly aging societies.