Measuring EU-Wide Inequality

Michael Dauderstädt

World Economics, 2020, vol. 21, issue 2, 83-104

Abstract: EU-wide inequality is higher than official figures by Eurostat suggest. With a Gini coefficient of 0.35 and a quintile ratio of 8.4 in 2018 (5.8 at purchasing power parity), it reaches the level of US inequality. This is a major driver of migration and relocation of production within the European Union (EU), both of which have led to a rise of nativist votes and Brexit. Relative inequality has been declining owing to catch-up growth of the poorer economies in central and eastern Europe, while within-country inequality has remained stable or increased. However, absolute inequality is likely not to decline for many years.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:wej:wldecn:786

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