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Wealth inequality in Europe and the delusive egalitarianism of Scandinavian countries

Author

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  • Skopek, Nora
  • Buchholz, Sandra
  • Blossfeld, Hans-Peter

Abstract

Past sociological inequality research focused on (labor) market outcomes, while neglecting the even more important role of wealth. In our study we investigate the distribution of wealth among the elderly across Europe within the framework of Esping-Andersen’s typology of welfare states. Using SHARE data, our analyses suggest (1) that there is strong variation in the distribution of wealth between European countries, and (2) that patterns of wealth inequality differ strongly from patterns of income inequality. Surprisingly high levels of wealth disparity were found in the social democratic welfare regimes commonly known as very egalitarian societies. We conclude that Esping-Andersen’s scheme requires reconsideration because it is based on a one-sided understanding of social stratification not accounting for the central role of wealth in the stratification process.

Suggested Citation

  • Skopek, Nora & Buchholz, Sandra & Blossfeld, Hans-Peter, 2011. "Wealth inequality in Europe and the delusive egalitarianism of Scandinavian countries," MPRA Paper 35307, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:35307
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    1. Paul Beer & Wiemer Salverda, 2014. "2014-16: Piketty in the Netherlands - The first reception," Labour markets and industrial relations in the Netherlands - Working Papers 2014-16, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. Yoontae Hwang & Yongjae Lee & Frank J. Fabozzi, 2023. "Identifying household finance heterogeneity via deep clustering," Annals of Operations Research, Springer, vol. 325(2), pages 1255-1289, June.
    3. Jenny Chesters, 2016. "Trends in economic growth and levels of wealth inequality in G20 nations: 2001–2013," Contemporary Social Science, Taylor & Francis Journals, vol. 11(2-3), pages 270-281, July.
    4. M. Brzeziński & B. Jancewicz & Natalia Letki, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Poland," GINI Country Reports poland, AIAS, Amsterdam Institute for Advanced Labour Studies.
    5. Frank Cowell & Eleni Karagiannaki & Abigail McKnight, 2012. "Accounting for Cross-Country Differences in Wealth Inequality," LWS Working papers 13, LIS Cross-National Data Center in Luxembourg.
    6. van Bavel, Bas, 2016. "The Invisible Hand?: How Market Economies have Emerged and Declined Since AD 500," OUP Catalogue, Oxford University Press, number 9780199608133.
    7. Kacper Grejcz & Zbigniew Żółkiewski, 2017. "Household wealth in Poland: the results of a new survey of household finance," Bank i Kredyt, Narodowy Bank Polski, vol. 48(3), pages 295-326.
    8. Vassiliki Koutsogeorgopoulou & Manos Matsaganis & Chrysa Leventi & Jan-David Schneider, 2014. "Fairly Sharing the Social Impact of the Crisis in Greece," OECD Economics Department Working Papers 1106, OECD Publishing.

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    More about this item

    Keywords

    Inequality; wealth; net worth; income; SHARE; stratification; welfare state; Europe;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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