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The evolution of inequality and social cohesion in Europe: 1957-2017

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  • Francesco Vercelli

    (Bank of Italy)

Abstract

Our study finds that income inequality among EU-15 citizens decreased remarkably from 1957 to 2017, with the Gini coefficient dropping by nearly 30 per cent. The process was very rapid until the mid-1980s. It then slowed gradually, to the point that inequality started rising at the beginning of the 2000s. The estimates of European income distribution and the inequality measures we compute are based on the method proposed by Sala-i-Martin (2006). This methodology overcomes the problem of the limited availability of long-term survey data on income by using income shares from the World Income Inequality Database.

Suggested Citation

  • Francesco Vercelli, 2019. "The evolution of inequality and social cohesion in Europe: 1957-2017," Questioni di Economia e Finanza (Occasional Papers) 526, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_526_19
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D3 - Microeconomics - - Distribution
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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