Quotation Kranzinger, Stefan. 2018. The Decom­po­si­tion of Income Inequa­lity in the EU-28. INEQ Working Paper Series, 9.




Recently the social-economic divide increased in Europe which might endanger the European project. However, there is a lack of current research that provides results for policy implications to counteract this development. Therefore, this paper replicates the work of Beblo and Knaus (2001) and analyses the composition of income inequality for the EU-28 in 2014 by using data from the European Survey on Income and Living Conditions in two steps. First, I apply the Theil index and additively decompose the sources of inequality into a within- and between-component by countries, country groups and demographic groups. Second, I analyse the impact of government redistribution on income inequality. The results show that inequality, with regard to net income, is highest for households with household heads older than 59 years and lowest for households with children. Moreover, high income countries have lower inequality, higher social expenditures and redistribute more than low income countries. On country group level, I illustrate that Social-Democratic countries have the lowest income inequality and redistribute most, while the opposite holds true for Baltic countries.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title The Decom­po­si­tion of Income Inequa­lity in the EU-28
Title of whole publication INEQ Working Paper Series, 9
Year 2018
URL http://epub.wu.ac.at/6351/1/WP_Decomposition.pdf
JEL D31, D33


Kranzinger, Stefan (Details)
Department of Economics (Crespo Cuaresma) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5334 Political economic policy (Details)
5341 Economic policy (Details)
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