Now more than ever, the EU needs to address concerns about the significant decline in productivity growth and the increasing perception of unfairness. Completing the single market would unlock the EU's growth potential. At the same time, the EU should empower member states to fight inequality by helping them better distribute the gains arising from economic integration.
Inclusive growth has been the exception globally, and will be a greater challenge in the future. Achieving it has to be central to our agenda, but requires rethinking and reprioritisation.
The ‘poverty’ target set by the European Commission aims to lift “over 20 million people out of poverty” between 2008 and 2020 in the EU27. Progress to date against this target has been disappointing. Why is it so hard to reach the Europe 2020 ‘poverty’ target? What does the poverty indicator actually measure?
Is technological progress behind growing income inequality? No, according to Zsolt Darvas, who argues that redistribution and the regulation of certain professions were more important factors.
How inclusive is growth in transition countries? Post-communist countries are becoming more prosperous but many people are being left behind, risking setbacks in political and economic development.
The properly measured EU-wide Gini coefficient of disposable income inequality shows that inequality in the EU as whole declined in 1994-2008, after which it remained broadly stable. However, within the EU, there are large differences in income inequality which require policy action.
Our early econometric analysis shows that Donald Trump performed more strongly in states with higher income inequality. He also did better in states with a higher share of less-educated, older, US-born and non-Hispanic voters.
In this Working Paper, Zsolt Darvas estimates the global and regional distribution of income and calculates statistics of global and regional income inequality.
Many Europeans have felt the effects of inequality due to the economic and financial crisis and stagnation. How can inequalities be tackled and which policies can support inclusive growth?
This Blueprint offers an in-depth analysis of inequalities of income and wealth in the EU, as well as their causes and consequences. How evenly are the benefits of growth distributed in our economies, and what does this mean for fairness and social mobility? How could and should policymakers react?
Discussions on inequality are gathering momentum in policy and academia. One indication of this trend is the frequency of the word “income inequality” occurring in Google’s corpus of books in English (British and American) in the 20th Century.
The creation of the single market generated winners and losers. Yet redistribution remains first and foremost a competence of national governments. It is thus fair to state that a failure in national, more than European, policies and welfare systems can be partly blamed for current discontent with the EU and the single market.