As economic inequality in Europe has continued to rise, it has become the subject of increasing academic attention …. What are the drivers of inequality? How does it affect intergenerational economic and social mobility? At what point does … inequality become a drag on economic growth or a threat to social order? What economic policy tools are available to reduce …

economists contrasted high unemployment and lower inequality in Europe with the great American job machine. This paper discusses … the relationship between skill structure and wage distributions and investigates the claim that inequality creates … incentives which facilitate human capital formation. The big tradeoff between efficiency and inequality is dismissed as a fallacy …