LAUSR

The paper uses concepts of the conditional and unconditional β-convergence in order to answer the question of whether there is a convergence in the institutional quality of the social sector between countries. Two groups of indicators for institutional quality of the social sector are used: the first indicator is the institutional quality index of social sector (QISS) as measure of quality of formal institutions; the second group includes indices of social development (ISD), which are used as quality indicators for development of informal social institutions. The regression results that both conditional and unconditional convergence of the institutional quality of the social sector, according to the indicator QISS has not been approved yet. It was found that there was an unconditional convergence by the social institutes Intergroup Cohesion, divergence by the institutions gender equality. Informal social institutions revealed are significantly influenced by voice and accountability, rule of law, control of corruption.