Tag: Income Inequality
Inequality in Europe: The Role of EU Enlargement
A new study reveals that the 2004 enlargement of the European Union helped narrow inequality in Europe. Using data from the World Inequality Database, researchers found that Eastern European countries joining the EU saw strong income growth across all income groups. This growth reduced inequality across the bloc, even though some countries experienced rising gaps internally. The study was conducted by Jesper Roine of the Stockholm School of Economics and Svante Strömberg of Uppsala University.
The Divide Before Enlargement
Before 2004, inequality in Europe reflected a clear divide between richer northern and poorer southern nations. Eastern European countries outside the EU were still adjusting to the post-communist era, facing both rapid economic changes and widening income gaps.
How Enlargement Shifted the Balance
The 2004 expansion brought ten mainly Eastern European states into the EU. These countries experienced rapid income growth that reached both rich and poor households. In contrast, many older member states—especially in Southern Europe—saw stagnating or shrinking incomes for lower- and middle-income earners.
Key Research Findings
- New Eastern European members saw faster income growth than older EU states across all income levels.
- The poorest 50% of the EU population enjoyed annual growth three times higher than the top 10%.
- Many income groups in Southern Europe lost ground in the EU-wide income rankings.
- Overall inequality in Europe fell after enlargement, despite mixed trends within individual countries.
Implications for Future Growth
The findings suggest that future EU expansions—such as the possible accession of Ukraine, Moldova, and Georgia—could also reduce inequality in Europe if new members experience inclusive growth. However, continued stagnation in older members could deepen political divides.
Read the Full Peer-Reviewed Research Paper
Explore the complete findings and analysis by reading the full report in the International Tax and Public Finance journal.
Enhanced Access to Data Can Reduce the Gender Gap
On International Women’s Day, researchers from the FREE Network institutes released the policy brief “Closing the Gender Data Gap” to highlight the crucial role of data in addressing economic inequalities between women and men. The brief explores how improved data collection and access can help reduce the gender gap across labor markets, income, education, pensions, and caregiving responsibilities.
Why Better Data Matters for Gender Equality
In recent decades, progress in documenting historical developments and expanding access to new data sources has significantly improved our understanding of the different economic outcomes experienced by women and men. Today, researchers have deeper insights into:
- Labor market participation and outcomes
- Income levels and wealth accumulation
- Educational investments and pension systems
- Consumption and household decision-making
- Caregiving responsibilities and time use
These insights show that better data reduces the gender gap by revealing disparities and helping shape effective policy responses.
Key Findings
The policy brief emphasizes that to effectively design policies and strategies, data must be more accurate, comprehensive, and regularly updated. The researchers outline four critical recommendations:
- Increase access to digitized information – Governments and public institutions should make more administrative and statistical data available for research.
- Support funding for surveys – Combining survey data with administrative sources enhances both detail and reliability.
- Ensure regular data collection – Continuous monitoring allows researchers to measure the impact of major events such as legislation, conflicts, pandemics, or natural disasters.
- Leverage innovative data sources – Mobile apps, social media, and other digital platforms provide new perspectives on socio-economic trends and gender disparities.
About the Authors
The policy brief “Closing the Gender Data Gap” was authored by:
- Michal Myck (CenEA)
- Monika Oczkowska (CenEA)
- Pamela Campa (SITE)
- Maria Perrotta Berlin (SITE)
- Jesper Roine (SITE)
Media Contact
For press or media inquiries, please contact: Maria Perrotta Berlin, Professor at SITE, Phone: 0737332198, Email: Maria.Perrotta [at] hhs.se