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Relative Income Distribution in Six European Countries

Ilaria Petrarca and Roberto Ricciuti ()

A chapter in Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting, 2016, vol. 24, pp 361-386 from Emerald Publishing Ltd

Abstract: Abstract The relationship between income inequality and polarization is an empirical fact: a change in equality might occur together with a change in polarization. At the same time, polarization might emerge while inequality remains constant. The outcome of this process entails relevant information on the evolution of the income distribution. We exploit the LIS database to perform a relative distribution analysis for six European countries. Our aim is describing how disposable income distributions evolved over time. The results indicate that polarization increased in all the considered countries, being the largest in the United Kingdom and the smallest in Italy. Nonetheless, in all the countries downgrading prevails over upgrading: the relevance of the middle class getting poorer is larger than the one of the middle class getting richer.

Keywords: Income distribution; polarization; inequality; relative distribution methods; C14; D31; D63; I32 (search for similar items in EconPapers)
Date: 2016
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