The labour market, income per capita and welfare in EuropeAn overview of the last two decades

  1. Raquel Sebastian 1
  1. 1 Universidad Complutense de Madrid (Spain), ICAE and EQUALITAS
Aldizkaria:
Ekonomiaz: Revista vasca de economía

ISSN: 0213-3865

Argitalpen urtea: 2022

Zenbakien izenburua: Crecimiento inclusivo y bienestar social

Zenbakia: 101

Orrialdeak: 158-183

Mota: Artikulua

DIALNET GOOGLE SCHOLAR lock_openDialnet editor

Beste argitalpen batzuk: Ekonomiaz: Revista vasca de economía

Laburpena

Using PWT10 and EU-SILC, we analyse the relationship between income per capita, wage inequality and welfare for 30 European countries over the period 2004-2019. We found that there is a great divergence between European countries in terms of labour productivity, although this variable is strongly (positively) related to the average salary of the different European economies. Spain has experienced one of the largest increases in wage inequality in the last two decades, and the functioning of the labour market is not the only factor that explains this evolution in the short term. The countries with the highest income per capita have increased their well-being the most, while in Spain this variable has barely changed. Gains in the mean wage have been offset by rising wage inequality. In addition to being far from the labour productivity figures of our more developed neighbours, we have a convergence problem in wage inequality.

Erreferentzia bibliografikoak

  • Andrés, J.; Doménech, R. (2020): La era de la disrupción digital. Empleo, desigualdad y bienestar social ante las nuevas tecnologías globales. Ediciones Deusto.
  • Ayala, L.; Cantó, O. (2022): Radiografía de medio siglo de desigualdad en España. Informe- 01. Proyecto «Desigualdad y Pacto social ». Observatorio Social, La Caixa.
  • Ayala, L.; Cantó, O. (2018): The driving forces of rising inequality in Spain: Is there more to it than a deep worsening of low income household’s living standards?, Chapter 10 in Brian Nolan (ed.) Inequality and Inclusive Growth in Rich Countries: Shared Challenges and Contrasting Fortunes, Oxford University Press, Oxford.
  • Ayala, L.; Cantó, O.; Rodríguez, J.G. (2017): «Poverty and the business cycle: A regional panel data analysis for Spain using alternative measures of unemployment», Journal of Economic Inequality, 15(1), 47-73.
  • Bergson, A. (1938): «A Reformulation of Certain Aspects of Welfare Economics.» Quarterly Journal of Economics, 52(2), 310-334. https:// doi.org/10.2307/1881737
  • Deaton, A. (2008): «Income, Health, and Wellbeing Around the World: Evidence from the Gallup World Poll.» Journal of Economic Perspectives, 22(2), 53-72.
  • Feenstra, R.C.; Inklaar, R.; Timmer, M.P. (2015): «The Next Generation of the Penn World Table.» American Economic Review, 105(10), 3150-3182. Available for download at www.ggdc.net/pwt.
  • Heston, A.; Summers, R. (1996): «International Price and Quantity Comparisons: Potentials and Pitfalls.» American Economic Review, 86 (2), 20-24.
  • Jones, CH.; Klenow, P. (2016): «Beyond GDP? Welfare Across Countries and Time.» American Economic Review, 106(9), 2426-2457.
  • Mukhopadhaya, P. (2003): «A Generalized Social Welfare Function and Its Disaggregation by Components of Income: The method and applications». In J. Bishop and Y. Amiel (eds.), Inequality, Welfare and Poverty: Theory and Measurement (Research on Economic Inequality, 9, 245-264). Emerald Publishing Limited. https://doi.org/10.1016/S1049- 2585(03)09012-4
  • Palomino, J.C.; Rodríguez, J.G.; Sebastian, R. (2020a): «Wage Inequality and Poverty Effects of Lockdown and Social Distancing in Europe »». European Economic Review, 129. https:// doi.org/10.1016/j.euroecorev.2020.103564
  • Palomino, J.C.; Rodríguez, J.G.; Sebastian, R. (2020b): «The COVID-19 Shock on the Labour Market: Poverty and Inequality Effects across Spanish Regions», INET Oxford Working Paper No. 2021-06.
  • Rodríguez, J.G.; Salas, R. (2014a): «The Gini coefficient: majority voting and social welfare. » Journal of Economic Theory, 152, 214- 23. https://doi.org/10.1016/j.jet.2014.04.012
  • Rodríguez, J.G.; Salas, R. (2014b): «Majority voting and Gini-based social welfare: testing the hypothesis of symmetry. » Applied Economic Letters, 22(8), 658-63. https://doi.org/10.1080/13504851.2014.967374
  • Sen, A.K. (1974): «Informational Bases of Alternative Welfare Approaches: Aggregation of Income Distribution.» Journal of Public Economics, 3(4), 387-403. Available for download at: https://doi.org/10.1016/0047-2727(74)90006-1.
  • Summers, R.; Heston, A. (1988): «A New Set of International Comparisons of Real Product and Price Levels: Estimates for 130 Countries, 1950-1985.» Review of Income and Wealth, 34 (1), 1-25.
  • Summers, R.; Heston, A. (1991): «The Penn World Table (Mark 5): An Expended Set of International Comparisons, 1950-1988.» Quarterly Journal of Economics, 106 (2), 327-68.
Datuen iturria: Dialnet