IDEAS home Printed from https://ideas.repec.org/p/has/bworkp/1713.html
   My bibliography  Save this paper

EU-wide income inequality in the era of the Great Recession

Author

Listed:
  • Peter Benczur

    (European Commission Joint Research Centre - Finance and Economy Unit B.01)

  • Zsombor Cseres-Gergely

    (European Commission Joint Research Centre - Finance and Economy Unit B.01)

  • Peter Harasztosi

    (European Commission Joint Research Centre - Finance and Economy Unit B.01)

Abstract

This paper uses microdata to look at stylised facts of EU-wide income inequality during the 2006-2013 period. Our contribution is to bring together four elements of the analysis that has appeared only in separation so far. Our analysis is EU-wide, but regionally detailed, looks at the longeset possible term with harmonized survey data, uses inequality indicators sensitive to different parts of the income distribution and shows the contribution of income components to income inequality. Using this, we are able to show how the dynamics of inequality in Europe was shaped by changes on the periphery, in hours worked, in wages and in the structure of households.

Suggested Citation

  • Peter Benczur & Zsombor Cseres-Gergely & Peter Harasztosi, 2017. "EU-wide income inequality in the era of the Great Recession," Budapest Working Papers on the Labour Market 1713, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:1713
    as

    Download full text from publisher

    File URL: http://www.mtakti.hu/wp-content/uploads/2017/12/BWP1713.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Yoram Weiss & Reuben Gronau, 1981. "Expected Interruptions in Labour Force Participation and Sex-Related Differences in Earnings Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 607-619.
    2. repec:pri:rpdevs:deaton_price_indexes_inequality_and_the_measurement_of_world_poverty_aer. is not listed on IDEAS
    3. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
    4. Nolan, Brian & Salverda, Wiemer & Checchi, Daniele & Marx, Ive & McKnight, Abigail & Toth, Istvan Gy (ed.), 2014. "Changing Inequalities and Societal Impacts in Rich Countries: Thirty Countries' Experiences," OUP Catalogue, Oxford University Press, number 9780199687428.
    5. Dirk Krueger & Fabrizio Perri & Luigi Pistaferri & Giovanni L. Violante, 2010. "Cross Sectional Facts for Macroeconomists," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 1-14, January.
    6. Salverda, Wiemer & Nolan, Brian & Checchi, Daniele & Marx, Ive & McKnight, Abigail & Toth, Istvan Gy (ed.), 2014. "Changing Inequalities in Rich Countries: Analytical and Comparative Perspectives," OUP Catalogue, Oxford University Press, number 9780199687435.
    7. Christoph Lakner & Branko Milanovic, 2016. "Global Income Distribution: From the Fall of the Berlin Wall to the Great Recession," The World Bank Economic Review, World Bank, vol. 30(2), pages 203-232.
    8. Honohan, Patrick, 2005. "Measuring microfinance access : building on existing cross-country data," Policy Research Working Paper Series 3606, The World Bank.
    9. Stefano Filauro, 2017. "European incomes, national advantages: EU-wide inequality and its decomposition by country and region," EERI Research Paper Series EERI RP 2017/05, Economics and Econometrics Research Institute (EERI), Brussels.
    10. Angus Deaton, 2010. "Price Indexes, Inequality, and the Measurement of World Poverty," American Economic Review, American Economic Association, vol. 100(1), pages 5-34, March.
    11. Deaton, Angus & Paxson, Christina, 1994. "Intertemporal Choice and Inequality," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 437-467, June.
    12. repec:pri:rpdevs:presidential%20address%2017january%202010%20all.pdf is not listed on IDEAS
    13. Jonathan Heathcote & Fabrizio Perri & Giovanni L. Violante, 2010. "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 15-51, January.
    14. Engel, Melissa & Schaffner, Sandra, 2012. "How to Use the EU-SILC Panel to Analyse Monthly and Hourly Wages," Ruhr Economic Papers 390, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Daniele Checchi & Cecilia García-Peñalosa & Lara Vivian, 2016. "Are changes in the dispersion of hours worked a cause of increased earnings inequality?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-34, December.
    16. Angus Deaton & Olivier Dupriez, 2011. "Spatial price differences within large countries," Working Papers 1321, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    17. repec:pri:rpdevs:spatial_price_differences_in_large_countries-_10-jul_2011_complete is not listed on IDEAS
    18. John A. Knowles, 2013. "Why are Married Men Working So Much? An Aggregate Analysis of Intra-Household Bargaining and Labour Supply," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(3), pages 1055-1085.
    19. repec:ilo:ilowps:485860 is not listed on IDEAS
    20. Michele Raitano, 2016. "Income Inequality in Europe Since the Crisis," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 51(2), pages 67-72, March.
    21. David Domeij & Martin Floden, 2010. "Inequality Trends in Sweden 1978-2004," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 179-208, January.
    22. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66(4), pages 281-281.
    23. Andrea Brandolini, 2006. "Measurement of Income Distribution in Supranational Entities: The Case of the European Union," LIS Working papers 452, LIS Cross-National Data Center in Luxembourg.
    24. Domnisoru, Ciprian., 2014. "The largest drop in income inequality in the European Union during the Great Recession : Romania's puzzling case," ILO Working Papers 994858603402676, International Labour Organization.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2021. "Dynamics of inequality and opportunities within European countries," Bulletin of Economic Research, Wiley Blackwell, vol. 73(4), pages 555-579, October.
    2. Andrea Brandolini & Alfonso Rosolia, 2019. "The Distribution of Well-Being among Europeans," SOEPpapers on Multidisciplinary Panel Data Research 1052, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Carlos Vacas-Soriano & Enrique Fernández-Macías & Rafael Muñoz de Bustillo, 2020. "Recent trends in wage inequality from an EU perspective: a tale of two convergences," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(3), pages 523-542, August.
    4. Fragkos, Panagiotis & Fragkiadakis, Kostas & Sovacool, Benjamin & Paroussos, Leonidas & Vrontisi, Zoi & Charalampidis, Ioannis, 2021. "Equity implications of climate policy: Assessing the social and distributional impacts of emission reduction targets in the European Union," Energy, Elsevier, vol. 237(C).
    5. Cseres-Gergely, Zsombor & Kvedaras, Virmantas, 2019. "Change and convergence of income distributions in the European Union during 2007-2014," JRC Working Papers in Economics and Finance 2019-13, Joint Research Centre, European Commission.
    6. Michael Dauderstädt, 2020. "Einkommensungleichheit in der EU [Income Disparities in the European Union]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(8), pages 628-632, August.
    7. Kvedaras, Virmantas & Cseres-Gergely, Zsombor, 2021. "China’s WTO accession and income inequality in European regions: External pressure and internal adjustments," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 34-53.
    8. Kvedaras, Virmantas & Cseres-Gergely, Zsombor, 2020. "Convergence of income distributions: Total and inequality-affecting changes in the EU," Economics Letters, Elsevier, vol. 188(C).
    9. Esteban Sánchez-Moreno & Lorena P. Gallardo-Peralta, 2022. "Income inequalities, social support and depressive symptoms among older adults in Europe: a multilevel cross-sectional study," European Journal of Ageing, Springer, vol. 19(3), pages 663-675, September.
    10. Colagrossi, Marco & Karagiannis, Stelios & Raab, Roman, 2019. "The Median Voter Takes it All: Preferences for Redistribution and Income Inequality in the EU-28," JRC Working Papers in Economics and Finance 2019-06, Joint Research Centre, European Commission.
    11. Filauro, Stefano & Parolin, Zachary, 2018. "Income Inequality in the European Union & United States: A Comparative Decomposition," SocArXiv g4cd3, Center for Open Science.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nao Sudo & Michio Suzuki & Tomoaki Yamada, 2012. "Inequalities in Japanese Economy during the Lost Decades," CIRJE F-Series CIRJE-F-856, CIRJE, Faculty of Economics, University of Tokyo.
    2. De Magalhães, Leandro & Santaeulàlia-Llopis, Raül, 2018. "The consumption, income, and wealth of the poorest: An empirical analysis of economic inequality in rural and urban Sub-Saharan Africa for macroeconomists," Journal of Development Economics, Elsevier, vol. 134(C), pages 350-371.
    3. Jeremy Lise & Nao Sudo & Michio Suzuki & Ken Yamada & Tomoaki Yamada, 2014. "Wage, Income and Consumption Inequality in Japan, 1981-2008: from Boom to Lost Decades," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(4), pages 582-612, October.
    4. Lichner, Ivan & Lyócsa, Štefan & Výrostová, Eva, 2022. "Nominal and discretionary household income convergence: The effect of a crisis in a small open economy," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 18-31.
    5. Mark Aguiar & Mark Bils, 2015. "Has Consumption Inequality Mirrored Income Inequality?," American Economic Review, American Economic Association, vol. 105(9), pages 2725-2756, September.
    6. Theloudis, Alexandros, 2021. "Consumption inequality across heterogeneous families," European Economic Review, Elsevier, vol. 136(C).
    7. Bayer, Christian & Kuhn, Moritz, 2018. "Which Ladder to Climb? Decomposing Life Cycle Wage Dynamics," CEPR Discussion Papers 13158, C.E.P.R. Discussion Papers.
    8. Waldenstrom, Daniel & Hammar, Olle, 2017. "Global earnings inequality, 1970-2015," CEPR Discussion Papers 12019, C.E.P.R. Discussion Papers.
    9. Krebs, Tom & Yao, Yao, 2016. "Labor Market Risk in Germany," IZA Discussion Papers 9869, Institute of Labor Economics (IZA).
    10. Virginia Maestri & Andrea Roventini, 2012. "Inequality and Macroeconomic Factors: A Time-Series Analysis for a Set of OECD Countries," Working Papers 34/2012, University of Verona, Department of Economics.
    11. Arpita Chatterjee & Aarti Singh & Tahlee Stone, 2016. "Understanding Wage Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 348-360, September.
    12. Almas Heshmati & Robert Rudolf, 2014. "Income versus Consumption Inequality in Korea: Evaluating Stochastic Dominance Rankings by Various Household Attributes," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 413-436, December.
    13. Fátima Cardoso & Nuno Alves & Nuno Monteiro, 2020. "A characterization of income and consumption inequality in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    14. Ludwig, Johannes, 2015. "The role of education and household composition for transitory and permanent income inequality–evidence from PSID data," Journal of Macroeconomics, Elsevier, vol. 46(C), pages 129-146.
    15. Virginia Maestri & Roventini, A. (Andrea), 2012. "GINI DP 30: Stylized Facts on Business Cycles and Inequality," GINI Discussion Papers 30, AIAS, Amsterdam Institute for Advanced Labour Studies.
    16. Sung-Jin Kang & Robert Rudolf, 2016. "Rising Or Falling Inequality In Korea? Population Aging And Generational Trends," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-26, December.
    17. Diana Alessandrini & Stephen Kosempel & Alessandra Pelloni & Thanasis Stengos, 2016. "Earnings inequality, the business cycle, and the life cycle," Working Papers 1602, University of Guelph, Department of Economics and Finance.
    18. Ch.-M. CHEVALIER, 2018. "Consumption inequality in France between 1995 and 2011," Documents de Travail de l'Insee - INSEE Working Papers g2018-07, Institut National de la Statistique et des Etudes Economiques.
    19. Gordon Anderson & Maria Grazia Pittau & Roberto Zelli & Jasmin Thomas, 2018. "Income Inequality, Cohesiveness and Commonality in the Euro Area: A Semi-Parametric Boundary-Free Analysis," Econometrics, MDPI, vol. 6(2), pages 1-20, March.
    20. Xinhua Gu & Yang Zhang & Xiao Chang, 2017. "The role of financial systems for cross-country differences in the link between income and consumption inequality," Applied Economics, Taylor & Francis Journals, vol. 49(24), pages 2365-2378, May.

    More about this item

    Keywords

    income inequality; European Union;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:has:bworkp:1713. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nora Horvath (email available below). General contact details of provider: https://edirc.repec.org/data/iehashu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.