  This paper aims to review the different impacts of income inequality drivers
on the Gini coefficient, depending on institutional specificities. In this
context, we divided the European Union member states in two clusters (the
cluster of member states with inclusive institutions / extractive institutions)
using the institutional pillar as a clustering criterion. In both cases, we
assesed the impact of income inequality drivers on Gini coefficient by using a
fixed effects model in order to examine the role and importance of the
institutions in the dynamics of income disparities.The models were estimated by
applying the Panel Estimated Generalized Least Squares (EGLS) method, this
being weighted by Cross-section weights option. The separate assessment of the
income inequality reactivity to the change in its determinants according to the
institutional criterion represents a new approach in this field of research and
the results show that the impact of moderating income inequality strategies is
limitedin the case of member states with extractive institutions.
