Recent developments in the distribution of wages in Europe

Abstract:

This report gives an overview of recent developments in the distribution of wages in Europe from 2004 to 2011 – the period before and after the onset of the Great Recession. While the main focus is on the EU dimension, the report analyses relevant trends and developments within countries in a comparative perspective. The findings are drawn from two key data sources: the EU Statistics on Income and Living Conditions (EU-SILC) and the Structure of Earnings Survey (SES).

The analysis shows that wage inequality in the EU as a whole decreased up to 2008 due to a process of convergence in wage levels between European countries, while it increased after 2008, mainly as result of inequality developments within countries. Mixed patterns in the evolution of wage inequality are found across European countries. The report highlights the need for better and more frequently updated data on wage developments at EU level.

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