scholarly journals The Distribution of Well-Being Among Europeans

2021 ◽  
pp. 39-103
Author(s):  
Andrea Brandolini ◽  
Alfonso Rosolia
Keyword(s):  
Income Inequality ◽  
Poverty Reduction ◽  
Well Being ◽  
Careful Consideration ◽  
Living Standards ◽  
The European Union ◽  
Income Convergence ◽  
The Great Recession ◽  
Accession Countries ◽  
Eu Policies

The authors analyse the evolution of citizens’ living standards in the European Union (EU), considering the EU as a single country. Average living standards have improved considerably as the European integration process has unfolded. EU28 income inequality has steadily declined, mostly as a result of the macroeconomic convergence of new EU-accession countries. EU15 income inequality fell steadily until the mid-1980s, but picked up again during the economic turmoil following the Great Recession, largely reflecting the divergence between periphery and core countries in the Euro Area. Using a common EU standard reveals more progress in terms of poverty reduction. It also shows that the patterns of income convergence across member states differ across categories of residents, thus calling for a more careful consideration of the personal and national dimensions of EU policies.

Middle and Below Living Standards: What Can We Learn from Beyond Income Measures of Economic Well-being?

2018 ◽  
Author(s):  
Marii Paskov ◽  
Joan E. Madia ◽  
Tim Goedemé
Keyword(s):  
Well Being ◽  
Material Deprivation ◽  
Living Standards ◽  
Household Level ◽  
The Great Recession ◽  
Level Data ◽  
Working Age ◽  
Household Incomes ◽  
The Relationship ◽  
Economic Well Being

This chapter complements the income-based measures of living standards on which earlier chapters have focused by incorporating non-income dimensions of economic well-being into its analysis, including indicators of material deprivation, economic burdens, and financial stress. It analyses how working-age households around and below the middle of the income distribution fared in European countries in the years before, during, and after the Great Recession. Harmonized household-level data across the members of the EU are analysed to see whether the evolution of these various non-income measures present a similar or different picture to household incomes over time. To probe what lies behind the patterns this reveals, four quite different countries are then examined in greater depth. Finally, the chapter also explores the relationship between material deprivation for households around and below the middle and overall income inequality.

scholarly journals Income Distribution, Market Structure, and Individual Welfare

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Alexander Tarasov
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Market Structure ◽  
Poverty Reduction ◽  
Monopolistic Competition ◽  
Well Being ◽  
Welfare Gains ◽  
The Poor ◽  
Heterogenous Firms ◽  
Economic Well Being

This paper explores how income distribution affects market structure, prices, and economic well-being of different consumer groups. I consider a general equilibrium model of monopolistic competition with free entry, heterogenous firms and consumers that share identical but non-homothetic preferences. The results in the paper suggest that poverty reduction might be of a greater importance than lowering income inequality, as lower income inequality does not necessarily lead to welfare gains of the poor. In particular, I show that higher income inequality may benefit the poor via a trickle-down effect operating through the entry of firms into the market.

Why Inequality Matters: Some Economic Issues

2001 ◽  
Vol 15 (2) ◽  
pp. 3-28 ◽  
Author(s):  
Nancy Birdsall
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Political Process ◽  
Well Being ◽  
Political Life ◽  
The Political ◽  
Economic Policies ◽  
Industrialized Countries ◽  
Political Costs

Many industrialized countries, developing countries, and countries that have recently made the transition from communism to market-oriented economies are characterized by high and increasing income inequality. Trends in income inequality have been understood to have ethical significance for different reasons. Some have argued that lessening income inequality is a valuable goal in itself. This essay, on the other hand, focuses on three instrumental reasons for pursuing economic policies that engender less income inequality, particularly in developing countries.• Inequality can inhibit growth and slow poverty reduction.• Inequality often undermines the political process: that may lead to an inadequate social contract and may trigger bad economic policies-with ill effects on growth, human development, and poverty reduction.• Inequality may undermine civic and social as well as political life, and inhibit certain kinds of collective decision-making; at the societal level it may also generate its own self-justifying tolerance, perpetuating a high inequality equilibrium despite the potential economic and political costs.The author concludes that while societies with relatively high income inequality can, in principle, be equitable, it is more likely that income differentials will compound and aggravate unfairness in the allocation of opportunities, the functioning of the political process, and efforts to improve the well-being of the least advantaged.

Living Standards in Southern Europe over the Long Run

2021 ◽  
pp. 151-176
Author(s):  
Manos Matsaganis
Keyword(s):  
Labour Productivity ◽  
Well Being ◽  
Living Standards ◽  
Social Spending ◽  
Southern Europe ◽  
Distribution Of Wealth ◽  
The Great Recession ◽  
Long Run ◽  
Employment Education ◽  
Material Conditions

This chapter reviews how material conditions improved in Italy, Spain, Portugal, and Greece over many decades from the postwar period to the onset of the Eurozone crisis and the Great Recession; how Southern Europe lost ground in the 2010s; and how changes in living standards affected different population groups. The chapter unfolds in 15 short sections. Section 4.1 sets the scene by briefly discussing similarities and differences between the four countries. Section 4.2 recounts how life in Southern Europe was transformed since the mid-20th century in terms of material well-being. Sections 4.3–4.14 look at changes in gross domestic product, consumption, investment, labour productivity, employment, education attainment, population health, social spending, income inequality, poverty and social exclusion, the distribution of wealth, and life satisfaction. Section 4.15 concludes.

Can the European Union Contain and Improve Income Inequality?

2021 ◽  
pp. 516-570
Author(s):  
Wiemer Salverda
Keyword(s):  
European Union ◽  
Income Inequality ◽  
Policy Making ◽  
The European Union ◽  
Earned Income ◽  
Minimum Income ◽  
Strong Focus ◽  
Europe 2020 ◽  
Comprehensive Picture ◽  
Eu Policies

The chapter examines the results of EU-level actions regarding inequalities and their coordination with member countries. A comprehensive picture is drawn of income inequality and poverty for both the average EU country and the European Union as a single entity. Their linkages to the (combined) labour earnings received by households are explored. Contents and instruments of Europe 2020 flagship anti-poverty policymaking are analysed. Lessons are drawn for future EU policies concerning inequality, in particular for the recent European Pillar of Social Rights. As to policy contents, a strong focus on reducing the poverty gap is promoted, supported by introducing a child basic income and an earned income tax credit aimed at offering adequate minimum-income protection. The EU-level itself is addressed and inequality effects of unification scrutinized. Organizationally, a full and equivalent embedding in the dominant mechanism of EU social and economic policy making is advocated.

scholarly journals Financial Inclusion, Socioeconomic Disaster Risks and Sustainable Mountain Development: Empirical Evidence from the Karakoram Valleys of Pakistan

2020 ◽  
Vol 12 (22) ◽  
pp. 9737
Author(s):  
Kifayat Ullah ◽  
Abdul Qayyum Mohsin ◽  
Abdul Saboor ◽  
Saranjam Baig
Keyword(s):  
Logistic Regression ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Sampling Technique ◽  
Multidimensional Poverty ◽  
Financial Inclusion ◽  
Living Standards ◽  
Household Level ◽  
Mountain Development ◽  
The Impact

Does financial inclusion contribute to sustainable mountain development by providing access to financial resources and creating economic opportunities for poor mountain people? Keeping this question in mind, the present study aimed to investigate the nexus between financial inclusion and improvement in the living standards of mountain people, and reduction in socioeconomic disaster risks (economic poverty, multidimensional poverty and income inequality). For empirical investigation, the study employed Quasi Experimental Designs, Foster, Greer and Thorbecke poverty measures, Alkire et al. methodology, Gini Index and Quintile technique to assess the impact of financial inclusion on the living standards and reduction of economic poverty, multidimensional poverty and income inequality, respectively. We used the Logistic Regression technique to identify major drivers of socioeconomic disaster risks in the study area. The study collected quantitative and qualitative household level data from 424 households through structured questionnaires using multistage sampling technique for analysis. The findings of the study revealed a positive synergy among inclusive finance and living standards and a negative connection between financial inclusion and socioeconomic disaster risks in the Karakoram valleys of Pakistan. The logistic regression results also recognized financial inclusion as a potential determinant of economic poverty reduction. However, financial inclusion as a potential tool to eradicate multidimensional poverty in the study area showed insignificant results. These findings can help policy-makers and other stakeholders to understand the dynamics of socioeconomic disaster risks and the role of financial inclusion in their reduction to accomplish sustainable mountain development in the Karakoram valleys of Pakistan.

scholarly journals Income Inequalities in EU Countries: Gini Indicator Analysis

ECONOMICS ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 125-142
Author(s):  
Mythili Kolluru ◽  
Tetiana Semenenko
Keyword(s):  
European Union ◽  
Income Inequality ◽  
The European Union ◽  
The Great Recession ◽  
European Union Countries ◽  
World Economic ◽  
Indicator Analysis ◽  
Franklin Delano Roosevelt ◽  
Distribution Of Income ◽  
The Eu

Abstract Franklin Delano Roosevelt said that “the test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” According to the World Economic Forum (2021), income disparity is at the top of global risks in the coming years. The development of income inequality is a growing concern worldwide, particularly since the Great Recession. This study is based on available data on the Gini coefficient of equivalized disposable income from 2005 to 2019 for the 27 European Union countries. We found that the indicator’s value demonstrates a reasonably even distribution of income (not exceeding 40%) in all European Union countries, except Bulgaria. We used the FORECAST ETS function (Excel for Microsoft 365) that is based on the AAA version of the Exponential Smoothing (ETS) algorithm to conduct our analysis. We grouped the EU 27 countries to investigate income equality behavior. According to the interval’s median of the sample’s standard deviation, we selected Italy, Spain, Germany, Slovakia, Hungary, Bulgaria for further investigation. We conclude the absence of general trends in the inequality of income distribution in society due to the financial crisis factors. The research presents exploratory insights into income inequality in the European Union.

scholarly journals An Integrated Database to Measure Living Standards

2019 ◽  
Vol 35 (3) ◽  
pp. 531-576 ◽  
Author(s):  
Elena Dalla Chiara ◽  
Martina Menon ◽  
Federico Perali
Keyword(s):  
United States ◽  
Time Use ◽  
Evaluation Process ◽  
Well Being ◽  
The United States ◽  
Living Standards ◽  
Social Progress ◽  
Living Standard ◽  
Subjective Well Being ◽  
The European Union

Abstract This study generates an integrated database to measure living standards in Italy using propensity score matching. We follow the recommendations of the Commission on the Measurement of Economic Performance and Social Progress proposing that income, consumption of market goods and nonmarket activities, and wealth, rather than production, should be evaluated jointly in order to appropriately measure material welfare. Our integrated database is similar in design to the one built for the United States by the Levy Economics Institute to measure the multiple dimensions of well-being. In the United States, as is the case for Italy and most European countries, the state does not maintain a unified database to measure household economic well-being, and data sources about income and employment surveys and other surveys on wealth and the use of time have to be statistically matched. The measure of well-being is therefore the result of a multidimensional evaluation process no longer associated with a single indicator, as is usually the case when measuring gross domestic product. The estimation of individual and social welfare, multidimensional poverty and inequality does require an integrated living standard database where information about consumption, income, time use and subjective well-being are jointly available. With this objective in mind, we combine information available in four different surveys: the European Union Statistics on Income and Living Conditions Survey, the Household Budget Survey, the Time Use Survey, and the Household Conditions and Social Capital Survey. We perform three different statistical matching procedures to link the relevant dimensions of living standards contained in each survey and report both the statistical and economic tests carried out to evaluate the quality of the procedure at a high level of detail.

Europe's Income, Wealth, Consumption, and Inequality

2021 ◽  
Keyword(s):  
Close Association ◽  
Well Being ◽  
Social Model ◽  
The European Union ◽  
Individual Country ◽  
The Great Recession ◽  
Social Trends ◽  
Novel Approach ◽  
Starting Point ◽  
The Eu

The book is the Europe volume in an international series on income, wealth, consumption, well-being, and inequality. It focuses on the European Union (EU) and its member countries and other European countries that are in close association with it. The book provides an overview of economic and social trends in the countries and in country groupings. It takes the long-term process of European integration as a starting point. It addresses policy areas pertaining to certain aspects of inequality and the European social model in thematic chapters. It makes a specific point to look at the EU not as a conglomerate of individual countries but as an economic and political entity whose parts are closely interlinked politically and economically. It considers commonalities and differences in institutions and policies as they might impact the situation not just in one country but in the Union as a whole. The EU experience during the Great Recession and the Euro Crisis strongly show that developments in one country or a group of countries can harm not only well-being in an individual country but in the Union more broadly. The chapters often take a novel approach in the analysis of social trends and policies and identify major policy challenges for EU and national policymakers.

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