World leaders have come to recognise the challenge posed by high and rising economic inequality. This paper asks how Europe can address excessive inequality. It argues that we should learn from the lessons of history; there have been significant periods in the past when inequality fell. We can...

This paper proposes a simple algorithm based on a matrix formulation to compute the Esteban and Ray (ER) polarization index. It then shows how the algorithm introduced leads to quite a simple decomposition of polarization by income sources. Such a breakdown was not available hitherto. The...

Economists use various metrics for measuring income inequality. Here, the most commonly used measures—the Lorenz curve, the Gini coefficient, decile ratios, the Palma ratio, and the Theil index—are discussed in relation to their benefits and limitations. Equally important is the choice of...

Using a large panel microdata set for the time period 1992 to 2014, the paper analyses the long-run trends in German wage inequality for full-time workers. The approach differentiates by gender and region. The analysis confirms the result of other studies that show a sharp increase in wage...

Subgroup Decomposability is a very useful property in an inequality measure, and level-sensitivity, which requires a given level of inequality to acquire a greater significance the poorer a population is, is a distributionally appealing axiom for an inequality index to satisfy. In this paper,...

This article provides a tool to study over time the distributions of income in a population, regardless the irregular distribution of data. We even approach Lorenz curves at the times when we lack the required data. Finally we apply the present technique to a European country where inequalities...

A strong association between incomes across generations—with children from poor families likely to be poor as adults—is frequently considered an indicator of insufficient equality of opportunity. Studies of such “intergenerational persistence,” or lack of intergenerational mobility, are...

At least half of all employees in Germany described their wages in all three survey years under consideration here - 2005, 2007, and 2009 - as just. Still, major changes occurred over this period in how people perceived their earnings. Data from the Socio- Economic Panel (SOEP) Study show that...

Seit einiger Zeit mehren sich die Stimmen, die für Deutschland eine "soziale Schieflage" konstatieren und im Namen sozialer Gerechtigkeit Korrekturen fordern. So haben die Reallöhne in den vergangenen Jahren stagniert, teilweise sind sie sogar zurückgegangen. Zugleich kann eine Zunahme von...

Sowohl die Einkommensarmut als auch der Einkommensreichtum haben in Deutschland in den letzten Jahren deutlich zugenommen, zu Lasten der mittleren Einkommensgruppen. Reichtum sollte auch die Freiheit von materiellen Sorgen bedeuten. Trotz der Polarisierung der Einkommensverteilung hat der Anteil...