1. FISS 2017 Inequality in the European Union
Jonathan Bradshaw and Oleksandr Movshuk
Sigtuna
Sweden
6 June 2017

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).
Market incomes became more equal in only 4 countries Germany, Norway, Poland and Romania. Greece and Ireland worst
Social protection mitigated inequality more in about half countries most Switzerland, Latvia, Bulgaria. Least in Cyprus, Estona and Spain.
Direct taxes most redistributive in Switzeland, Latvia and UK!. Least in Cyprus, Estonia and Hungary.

7. Changes in inequality, as measured by Gini coefficient (2008-2014)
Changes in inequality, as measured by Gini coefficient ( ). Ranked by redistribution by benefits and taxes
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 and direct taxes. In Romania a decline in inequality was enhanced by improvements in cash benefits and direct taxes. In Switzerland, Bulgaria, UK, Netherlands abd Latvia market income inequality increased but inequalities in disposable income fell thanks to transfers.

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

9. Percentage changes in the proportion of households with children and pensioner households in the top quintile 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 and retired moved up the distribution
The EU ignores rising inequality and the EU funded programmes probably exacerbate it!