This paper reviews trends in income inequality in the EU over the last fifteen years and presents a comprehensive framework to assess and monitor income inequalities and related key policy areas. It relies on a three-stages approach, namely considering pre-market, in-market and post-market stages in income inequality in order to present an integrated policy approach. For each of these different stages, specific (proxy) indicators help identifying relevant policy approaches.
Four out of five EU citizens perceive inequality is too high in their country, a proportion that has remained fairly stable since 2017. On average in the EU, income inequality levels are broadly back to those from before the double-dip recession of 2009 and 2012. There have been, however, significant fluctuations over the period, as well as some convergence in trends across Member States and different evolutions at the bottom and at the top of the income distribution.
Distributional Impact Assessment (DIA) is presented as a cross-cutting policy tool that can help steering policy change safeguarding fairness, streamlining inequality and poverty reduction considerations in policy making, including in the context of the digital and green transition.

Read the full study: "Economic inequalities in the EU - Key trends and policies"

This article contributes to the broader collection of external ESCO publications, showcasing the use of ESCO within various methodologies or its presentation in both European and International contexts. As ESCO becomes increasingly used in applications and research projects across Europe and beyond, it is valuable to collect such sources and share best practices by diverse stakeholders. Therefore, this collection of external publications strengthens the exchange of knowledge within the ESCO community and can contribute to mutual learning in the field of skills, occupations and qualifications among European and international actors. If you are interested in sharing your publication, please write to EMPL-ESCO-SECRETARIAT@ec.europa.eu