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

Abstract

This paper uses microdata to look at stylised facts of EU-wide income inequality during the 2006-2013 period. The novelty of our contribution is an analysis that brings together four characteristics, appearing only in separation so far. It is EU-wide, but regionally detailed, looks at the longeset term possible with such 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.