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European income inequality begins to fall once again

Zsolt Darvas, (2018), “European income inequality begins to fall once again”, Bruegel, 30 Απριλίου

Income inequality among European Union citizens has previously shown strikingly different developments compared with income inequality among United States citizens. The economic collapse of post-communist countries after 1989 led to a rapid increase in income inequality among the combined group of citizens of the current 28 EU members until 1993. But from then on, inequality in the countries that now constitute the EU28 declined from 1994-2008 and thereafter remained broadly stable up to 2015, in contrast to increasing inequality in the US (illustrated in an earlier post). The updated Bruegel income inequality dataset shows that the EU-US divergence was reinforced in 2016, with a marked decline in EU-wide inequality.

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