This study analyses EU-28- and euro area-level income distribution with the latest EU-SILC data. More specifically it shows the evolution of inequality in net disposable and market incomes over the pre- and post-crisis period (2006-2013). I find that inequality between the EU-28 and euro area (EA) has converged due to a slow decrease in EU-28 inequality, at least until 2009, coupled with a mild increase in EA inequality. Thus, I compute how much between-country inequality, as opposed to within-country inequality, contributes to overall inequality in the EU-28 and euro area, observing that the trend of between-country inequality, albeit starting from very different levels, has been declining in the EU-28 while slightly increasing in the euro area. Similar trends are observed for between-region inequality. Finally, I approximate the extent to which individual incomes on the European scale can be predicted by country of residence and find evidence in line with the inequality decomposition by country.
Distribution income inequality decomposition by country European Union equality of opportunity