Αrt20100 Πέμπτη 29 Δεκεμβριου 2016
With only seven percent of the world’s people but about half of its
welfare payments, the European Union’s levels of inequality and
absolute poverty are low in a global context. Nevertheless EU countries
face social challenges.
Unemployment remains high in a number of member states, while the intergenerational divide between the young and the old has widened. Social mobility is weak, in particular in the more unequal economies of southern Europe, limiting opportunities for the children of poor and disadvantaged families. Striving for fairness in
economic development is crucial in order for societies to be stable and citizens not to feel disenchanted. This was why my colleague Zsolt Darvas and I attempted an analysis of inclusive growth in Europe with a global perspective.
With around 50 charts and many tables, we provide an anatomy of inclusive growth in the EU. Poverty, defined as very low absolute income, is extremely rare in the European Union. Income inequality also tends to be low, compared to other parts of the world. We present new estimates of inequality in the EU as a whole and show that, perhaps contrary to perceptions, it has declined since 1994. However, measured on a country-by-country basis, income inequality has in some cases increased
. Our analysis confirms its negative associations with lower social mobility, weaker educational achievements of children born into poorer families, worse health outcomes and higher unemployment. Moreover, Zsolt Darvas’ estimates confirm that high inequality and poverty boosted the ‘leave’ vote in the United Kingdom’s June 2016 Brexit referendum, suggesting that perceived unfairness can lead to protest votes in referendums and elections
. VIII | BRUEGEL BLUEPRINT 26
Our data casts doubt on the popular hypothesis that inequality is an unavoidable counterpart of technological change that favours those with skills. While we find evidence that the demand for university graduates has increased significantly in recent years and that certain tasks, most notably manual and cognitive tasks requiring routine skills, have been automatised, we also find that in many European countries university graduates receive a smaller premium over the wages of lower-educated workers compared to the US, and the premium has fallen. Our results suggest that we should not fear the ‘new machine age’, but must instead equip the next generation of workers with skills that benefit from technology. Such skills are likely to emphasise social and creative intelligence. European policymakers have a long to-do list to foster inclusive growth in Europe. Pressing tasks include improving access to quality education for all to ensure greater equality of opportunity. Welfare systems should be reformed for greater effectiveness in a number of countries, because the same amount of social spending often yields very different results in terms of inequality. A lower tax burden on low incomes would contribute to inclusive growth, as would a review of protectionism in certain segments of markets and unjustified rents. Designing fiscal policies so that fiscal adjustments do not disadvantage the young and families, or undermine education and investment, is equally important. Last but not least, unemployment needs to be addressed. These policies mostly concern national policymakers. EU institutions can highlight best practices and apply peer pressure to member states, but we warn that promising results without proper instruments could backfire and lead to a backlash against the EU if citizens perceive that promises are not being kept. Guntram B. Wolff, Director of Bruegel October 2016, Brussels
https://www.scribd.com/document/335272518/BLUE-PRINT-2016-BRUEGEL
www.fotavgeia.blogspot.com
Unemployment remains high in a number of member states, while the intergenerational divide between the young and the old has widened. Social mobility is weak, in particular in the more unequal economies of southern Europe, limiting opportunities for the children of poor and disadvantaged families. Striving for fairness in
economic development is crucial in order for societies to be stable and citizens not to feel disenchanted. This was why my colleague Zsolt Darvas and I attempted an analysis of inclusive growth in Europe with a global perspective.
With around 50 charts and many tables, we provide an anatomy of inclusive growth in the EU. Poverty, defined as very low absolute income, is extremely rare in the European Union. Income inequality also tends to be low, compared to other parts of the world. We present new estimates of inequality in the EU as a whole and show that, perhaps contrary to perceptions, it has declined since 1994. However, measured on a country-by-country basis, income inequality has in some cases increased
. Our analysis confirms its negative associations with lower social mobility, weaker educational achievements of children born into poorer families, worse health outcomes and higher unemployment. Moreover, Zsolt Darvas’ estimates confirm that high inequality and poverty boosted the ‘leave’ vote in the United Kingdom’s June 2016 Brexit referendum, suggesting that perceived unfairness can lead to protest votes in referendums and elections
. VIII | BRUEGEL BLUEPRINT 26
Our data casts doubt on the popular hypothesis that inequality is an unavoidable counterpart of technological change that favours those with skills. While we find evidence that the demand for university graduates has increased significantly in recent years and that certain tasks, most notably manual and cognitive tasks requiring routine skills, have been automatised, we also find that in many European countries university graduates receive a smaller premium over the wages of lower-educated workers compared to the US, and the premium has fallen. Our results suggest that we should not fear the ‘new machine age’, but must instead equip the next generation of workers with skills that benefit from technology. Such skills are likely to emphasise social and creative intelligence. European policymakers have a long to-do list to foster inclusive growth in Europe. Pressing tasks include improving access to quality education for all to ensure greater equality of opportunity. Welfare systems should be reformed for greater effectiveness in a number of countries, because the same amount of social spending often yields very different results in terms of inequality. A lower tax burden on low incomes would contribute to inclusive growth, as would a review of protectionism in certain segments of markets and unjustified rents. Designing fiscal policies so that fiscal adjustments do not disadvantage the young and families, or undermine education and investment, is equally important. Last but not least, unemployment needs to be addressed. These policies mostly concern national policymakers. EU institutions can highlight best practices and apply peer pressure to member states, but we warn that promising results without proper instruments could backfire and lead to a backlash against the EU if citizens perceive that promises are not being kept. Guntram B. Wolff, Director of Bruegel October 2016, Brussels
https://www.scribd.com/document/335272518/BLUE-PRINT-2016-BRUEGEL
BLUE PRINT 2016 BRUEGEL by Chatzianagnostou George on Scribd
www.fotavgeia.blogspot.com
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