Advertisement

Disposable Income Inequality, Cohesion and Crisis in Europe

  • Michael Dauderstädt
Chapter

Abstract

European inequality can be seen as inequality within and between Member States, regions and households. True Europe-wide inequality measures the inequality between all households of the European Union (EU). This inequality has been declining until 2008 due to stronger growth in poorer Member States. Since 2010 this progress has stagnated in the wake of the financial crisis, great recession and sovereign debt panic in the Euro area. Strong and rising inequality has contributed to these crises. Restoring growth and cohesion in Europe requires higher demand based on rising incomes of the poorer strata of the population.

References

  1. Atkinson, A. B., Marlier, E., Montaigne, F., & Reinstadler, A. (2010). Income poverty and income inequality. In A. B. Atkinson & E. Marlier (Eds.), Income and living conditions in Europe (pp. 101–131, here p. 109). Luxembourg: Eurostat and Publications Office of the EU.Google Scholar
  2. Bönke, T., & Schröder, C. (2015). European-wide inequality in times of financial crisis. DIW Discussion Papers 1482.Google Scholar
  3. Bourguignon, F. (2015). The globalization of inequality. Princeton and Oxford: Princeton University Press.CrossRefGoogle Scholar
  4. Dauderstädt, M. (2008). Ungleichheit und sozialer Ausgleich in der erweiterten Europäischen Union. Wirtschaftsdienst, 3/2008.Google Scholar
  5. Dauderstädt, M. (2014). Convergence in crisis. European integration in jeopardy. Retrieved from http://library.fes.de/pdf-files/id/ipa/11001.pdf
  6. Dauderstädt, M., & Keltek, C. (2011). Immeasurable inequality in the European Union. Intereconomics, 1, 44–51.CrossRefGoogle Scholar
  7. Dauderstädt, M., & Keltek, C. (2015). Social Europe in crisis. Retrieved from http://library.fes.de/pdf-files/id/ipa/11513.pdf
  8. Dauderstädt, M., & Keltek, C. (2016). No progress on social cohesion in Europe. Retrieved from http://library.fes.de/pdf-files/id/ipa/12668.pdf
  9. Goedemé, T., Collado, D., & Meeusen, L. (2014). Mountains on the move: Recent trends in national and EU-wide income dynamics in old and new EU Member States. ImPRovE Working Paper No. 14/05, Antwerp. Retrieved from http://improve-research.eu
  10. Gupta, S. (2014). Fiscal policy and income inequality. IMF Policy Paper, International Monetary Fund, Washington, DC.Google Scholar
  11. Kumhof, M., & Rancière, R. (2010). Inequality, leverage and crises. IMF Working Paper WP/10/268, International Monetary Fund, Washington, DC. Retrieved from https://www.imf.org/external/pubs/ft/wp/2010/wp10268.pdf
  12. Milanovic, B. (2016). Global inequality. A new approach fort the age of globalization. Cambridge and London: The Belknap Press of Harvard University Press.CrossRefGoogle Scholar
  13. Nino-Zarazua, M. et al. (2016). Global inequality: Relatively lower, absolutely higher. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/roiw.12240/abstract
  14. OECD. (2011). Divided we stand: Why inequality keeps rising. Paris: Organisation for Economic Co-operation and Development.Google Scholar
  15. OECD. (2015). In it together: Why less inequality benefits all. Paris: Organisation for Economic Co-operation and Development.Google Scholar
  16. Ostry, J. D., Berg, A., & Tsangarides, C. G. (2014). Redistribution, inequality and growth. IMF Staff Discussion Note 14/02, International Monetary Fund, Washington, DC. Retrieved from http://www.imf.org/external/pubs/ft/sdn/2014/sdn1402.pdf
  17. Piketty, T. (2013). Le capital au XXIe siècle. Paris: Seuil.Google Scholar
  18. Rajan, R. G. (2010). Fault lines: How hidden fractures still threaten the world economy. Princeton: Princeton University Press.Google Scholar
  19. Stiglitz, J. (2012). The price of inequality. New York: Norton.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Michael Dauderstädt
    • 1
  1. 1.Friedrich Ebert FoundationBonnGermany

Personalised recommendations