1. INEQUALITY TRENDS IN THE EU SINCE THE CRISIS
Jonathan Bradshaw and Oleksandr Movshuk
SPA 2017 Conference
Durham, July

2. Sources of data on inequality
Eurostat data base (ginis and 80/20 ratios latest 2015)
LIS (latest 2013)
OECD (latest 2014)
No analytical work since
Fredriksen (2012) on 2008 OECD data
Brandolini and Smeeding (2008) on 2000 LIS data
Atkinson et al (2010) on 2008 SILC data
Avram (2014) on 2008 SILC data
Ballas et al (2017) spatial data
No analysis of micro data since the crisis

3. Gini coefficient of equivalised disposable income 2015 - EU-SILC survey [ilc_di12]: Eurostat data

4. Changes in the Gini coefficient and the 80/20 ratios 2008-2015: Eurostat data

5. Redistributive impact of cash benefits and direct taxes on Gini coefficients (2014)
Most redistribution achieved by cash benefits. Best in Hungary, Greece and Denmark. Worst in Cyprus, Latvia and Estonia.
Taxation most redistributive in Ireland, Portugal and the UK. Least in Bulgaria, Switzerland and Poland

6. Changes in inequality, as measured by Gini coefficient (2008-2014)
Changes in inequality, as measured by Gini coefficient ( ). Ranked by changes disposable income Gini
These changes can perhaps be seen more clearly here. In Cyprus and many other countries the increase in inequality in market incomes was actually exacerbated by changes to cash transfers. In Romania a decline in inequality was enhanced by improvements in cash benefits and direct taxes. In Switzerland, Latvia, the UK and Belgium the market income inequality increased but inequalities in disposable income fell thanks to benefits and taxes.

7. Percentage changes in the proportions of households with children and pensioner households in the bottom quintile 2008 to 2014

8. Percentage changes in the proportion of households with children and pensioner households in the top quintile 2008 to 2014

9. Percentage changes in the proportions of households with children in the bottom quintile (market and disposable income, 2008 to 2014)

10. Conclusions
Only takes us to 2014 (income 2013) – austerity still being rolled out.
Big variations in inequality in EU
Over the crisis inequality increased in more countries than it fell. Increases (Cyprus v Iceland: Norway v Denmark and Sweden)
Cash benefits more redistributive than taxes
Market income inequality fell in only four countries.
Social protection and taxes protected inequalities in gross income increasing in a few countries
But policy exacerbated market inequality in most countries
In most countries children moved down the distribution (mostly as a result of changes to market income rather than benefits and taxes) and retired moved up the distribution
The EU ignores rising inequality and the EU funded programmes probably exacerbate it!