IDEAS home Printed from https://ideas.repec.org/p/hdl/wpaper/1703.html
   My bibliography  Save this paper

A Pan-European Perspective on Low-Income Dynamics in the EU

Author

Listed:
  • Tim Goedemé
  • Lorena Zardo Trindade
  • Frank Vandenbroucke

Abstract

In this paper we study trends at the lower tail of the EU-wide distribution of disposable household income. In contrast to most studies, we take a pan-European perspective and compare income levels across countries, after accounting for average price differences. More in particular, we make use of EU-SILC 2008 – 2014 to study trends and levels in the EU-wide low income proportion and the EU-wide low income gap. From the analysis emerges a highly dynamic picture which points to both convergence and, especially since 2010, divergence. Living standards in the new EU Member States, most notably Poland, Slovakia, and Bulgaria, have considerably improved in comparison with the EU-wide median, while living standards in Greece, and to a lesser extent Spain and Italy have clearly lost ground. These trends mark an important change in the composition of the bottom of the pan-European income distribution, with an increasing weight of the ‘old’ EU Member States at the bottom end, most notably the crisis-hit Southern European countries. Worryingly, we also observe that no country succeeded in substantially reducing the EU-wide low-income proportion while also substantially reducing the at-risk-of-poverty rate. This emphasises the need of a dual perspective on solidarity, a national and a pan-European, and underscores the importance of reflecting further on the need of mutual insurance and true solidarity across borders.

Suggested Citation

  • Tim Goedemé & Lorena Zardo Trindade & Frank Vandenbroucke, 2017. "A Pan-European Perspective on Low-Income Dynamics in the EU," Working Papers 1703, Herman Deleeck Centre for Social Policy, University of Antwerp.
  • Handle: RePEc:hdl:wpaper:1703
    as

    Download full text from publisher

    File URL: http://www.centrumvoorsociaalbeleid.be/sites/default/files/CSB%20Working%20Paper%201703.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Beblo, Miriam & Knaus, Thomas, 2001. "Measuring Income Inequality in Euroland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 301-320, September.
    2. Van Kerm, Philippe, 2007. "Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC," IRISS Working Paper Series 2007-01, IRISS at CEPS/INSTEAD.
    3. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    5. Tim Goedemé & Diego Collado & Leen Meeusen, 2014. "Mountains on the move: recent trends in national and EU-wide income dynamics in old and new EU Member States," ImPRovE Working Papers 14/05, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. Atkinson, A B, 1996. "Income Distribution in Europe and the United States," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 15-28, Spring.
    7. Whelan, Christopher T. & Maître, Bertrand, 2009. "Europeanisation of Reference Groups?," Papers RB2009/3/2, Economic and Social Research Institute (ESRI).
    8. Yves G. Berger & Chris J. Skinner, 2003. "Variance estimation for a low income proportion," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 52(4), pages 457-468, October.
    9. Andrea Brandolini, 2007. "Measurement of income distribution in supranational entities: the case of the European Union," Temi di discussione (Economic working papers) 623, Bank of Italy, Economic Research and International Relations Area.
    10. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494.
    11. Goedemé Tim & Van Lancker Wim, 2009. "A Universal Basic Pension for Europe's Elderly: Options and Pitfalls," Basic Income Studies, De Gruyter, vol. 4(1), pages 1-26, August.
    12. Iacovou, Maria & Kaminska, Olena & Levy, Horacio, 2012. "Using EU-SILC data for cross-national analysis: strengths, problems and recommendations," ISER Working Paper Series 2012-03, Institute for Social and Economic Research.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hdl:wpaper:1703. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wim Van Lancker). General contact details of provider: http://edirc.repec.org/data/csbuabe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.