APPROACHES TO SOCIO-ECONOMIC INEQUALITY IN ECONOMIC THEORY.

Purpose: The purpose of this study is to present approaches to socio-economic inequality in economic theory. Design/methodology/approach: This paper is theoretical in nature. I review relevant literature that addresses the perception of socio-economic inequality. Findings: Three approaches to socio-economic inequality are identified in the course of the analysis of its perception. The first approach entirely legitimises inequality as an effect of operation of a free market economy, maximisation of profit, praise for individualism and recognition of paradigms that stem from a neoliberal system The second approach assumes that there must be systemic solutions in place that completely eliminate inequality of outcome. It is based on a belief that the state must interfere firmly in the redistribution policy, understood as an extreme solution that leads to the levelling off of standards of life of all citizens. The third approach is a solution that points out that we agree to inequality (or to its deepening) but on certain conditions that prescribe principles and acceptable boundaries. This paper shows four such conditions: adoption of solutions that remove inequality of opportunity (start), adoption of solutions that remove inequality of opportunity, adoption of solutions that improve the position of the worst-off group and adoption of solutions associated with establishing a conventional minimum accepted by the society. Research limitations/implications: This research may affect political decisions of state authorities and will point out that we need to address the subject matter of inequality in future scholarly investigations. Practical implications: This knowledge may be used in the context of modelling economic and social systems. Originality/value: The article identifies 4 restricting conditions for the approach that points out that we must agree to socio-economic inequality. [ABSTRACT FROM AUTHOR]