The Unequal Crisis

How did income inequality evolve during the financial crisis?

This report discusses how inequality evolved in the US and EU during the crisis and afterwards. We concentrate here on income inequality although other types of inequality (in wealth and indebtedness distribution for example) are also in the Think Forward Summit‘s scope. As such, this report is the logical extension of ING’s recent reports on the evolution of income during and after the crisis.

Indeed, incomes did not converge before the crisis, and they even diverged between countries afterwards as we showed previously, and trends in income were also different inside each country. These different trends have been behind the rise in inequality over the last three decades, with the recent crisis years even worsening the picture. To discuss these evolutions and their sources is not only important for what they say about the consequences of the income evolutions previously described and to compare inequality evolutions between countries, but also for their impact on economic growth.

Download the full report or the summary below.