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Measuring Income Polarization for Twenty European Countries, 2004–13: A Shapley Growth-Redistribution Decomposition

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  • Jinxian Wang
  • Koen Caminada
  • Chen Wang

Abstract

Income polarization adds to the literature on income distribution by providing information on the poles of the distribution of income, but little is known about this issue in Europe. This article explores income polarization and its determinants for twenty European countries over the period 2004–13 based on EU-SILC microdata and Shapley decomposition. The results suggest that income polarization is rather low in Europe; it rose in West-EU15 countries during 2004–08, but declined afterwards. The opposite development is witnessed for Central and Eastern European new member states. Moreover, in most cases, market income induced higher polarization, while tax-benefit systems were polarization-reducing.

Suggested Citation

  • Jinxian Wang & Koen Caminada & Chen Wang, 2017. "Measuring Income Polarization for Twenty European Countries, 2004–13: A Shapley Growth-Redistribution Decomposition," Eastern European Economics, Taylor & Francis Journals, vol. 55(6), pages 477-499, November.
    • Handle: RePEc:mes:eaeuec:v:55:y:2017:i:6:p:477-499
    DOI: 10.1080/00128775.2017.1345637
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    Cited by:

    1. Ricci, Chiara Assunta & Scicchitano, Sergio, 2021. "The role of Great Recession on income polarization by population groups," GLO Discussion Paper Series 766, Global Labor Organization (GLO).
    2. Pasimeni Paolo, 2024. "Twenty Years After the Big Enlargement: Integration Within the Single Market," Intereconomics: Review of European Economic Policy, Paradigm, vol. 59(4), pages 222-230.
    3. Marta Pascual & David Cantarero & Paloma Lanza, 2018. "Health polarization and inequalities across Europe: an empirical approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1039-1051, November.
    4. Krajňák Michal, 2023. "Does the Type of Nominal Personal Income Tax Rate Affect Its Progressivity? A Case Study from the Czech Republic," Business Systems Research, Paradigm, vol. 14(1), pages 93-111, September.
    5. Chiara Assunta Ricci & Sergio Scicchitano, 2021. "Decomposing changes in income polarization by population group: what happened during the crisis?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 235-259, April.

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