European Inequalities. Social Inclusion and Income Distribution in the European Union

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1 European Inequalities Social Inclusion and Income Distribution in the European Union

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3 European Inequalities Social Inclusion and Income Distribution in the European Union Edited by: Terry Ward, Orsolya Lelkes, Holly Sutherland, István György Tóth Budapest, 2009

4 Acknowledgements The analysis presented in this report was carried out by a team led by Terry Ward and coordinated by Loredana Sementini. The team includes Mayya Hristova and Fadila Sanoussi (Applica, Brussels), Orsolya Lelkes and Eszter Zólyomi (European Centre for Social Welfare Policy and Research, Vienna), András Gábos, Márton Medgyesi, Péter Szivós and István György Tóth (TÁRKI, Budapest), Francesco Figari, Alari Paulus and Holly Sutherland (ISER, University of Essex), Olivier Bargain (University College, Dublin) and Manos Matsaganis (Athens University of Economics and Business). We are also grateful to Asghar Zaidi for his contribution to the work of the Observatory during Chapter 9 on country policy developments relied on detailed contributions from André Decoster and Kris De Swerdt, Katholieke Universiteit Leuven (Belgium), Teodora Noncheva, National Social Security Institute (Bulgaria), Magdalena Kotynkova, Research Institute for Labour and Social Affairs (Czech Republic), Niels Ploug, Danmarks Statistik (Denmark), Lauri Leppik, PRAXIS Center for Policy Studies (Estonia), Horacio Levy, ISER, University of Essex and European Centre for Social Welfare Policy and Research (Spain), Massimo Baldini, University of Modena and Reggio Emilia (Italy), Alf Vanags, Baltic International Centre for Economic Policy Studies (BICEPS) (Latvia), Romas Lazutka, Institute for Social Research (Lithuania), Frédéric Berger, CEPS/INSTEAD (Luxembourg), Frances Camilleri-Cassar, University of Malta (Malta), Hugo Swinnen, Verwey-Jonker Instituut (Netherlands), Michael Fuchs, European Centre for Social Welfare Policy and Research (Austria), Irena Topinska, Warsaw University (Poland), Carlos Farinha Rodrigues, CISEP Centro de Investigacao sobre Economia Portuguesa (Portugal), Livia Popescu, Babes-Bolyai University, Cluj (Romania), Tine Stanovnik, University of Ljubljana (Slovenia), Rastislav Bednarik, Institute for Labour and Family Research (Slovakia), Joakim Palme, Institute for Futures Studies (Sweden), Zdenko Babić, Institute of Economics, Zagreb (Croatia) and Burcu Yakut Çakar, Boğazıçı University (Turkey). Special thanks for their constructive comments are due to Ralf Jacob, Hakan Nyman and Isabelle Maquet from DG Employment, Social Affairs and Equal Opportunities of the European Commission, Michael Förster from OECD and Eric Marlier from CEPS/INSTEAD. Editors: Terry Ward, Orsolya Lelkes, Holly Sutherland, István György Tóth Production management: Loredana Sementini Language editing: Clive Liddiard-Maár Technical editing/coordination: Ildikó Nagy Cover design: Zsuzsi László Typesetting: András Nyíri Published by TÁRKI Social Research Institute Inc. Director: István György Tóth P.O. Box 71, H-1518 Budapest, Hungary Tel.: , Fax: Internet: tarki@tarki.hu ISBN No reproduction, copy, transmission or translation of this publication, in whole or in part, may be made without written permission. TÁRKI, 2009 The content of this book was the subject of a report drafted on commission for the European Commission s Directorate-General for Employment, Social Affairs and Equal Opportunities, in the framework of the European Social Situation Observatory (SSO). Original report: European Communities, 2009 The information and views expressed in the report are those of the author(s) and do not necessarily reflect the official opinion of the European Commission.

5 Table of Contents Introduction and Executive Summary... 7 Chapter 1 Income Distribution and the Risk of Poverty Orsolya Lelkes, Márton Medgyesi, István György Tóth and Terry Ward Chapter 2 The Factors Affecting the Risk of Poverty and Inequalities in Income Distribution Orsolya Lelkes, Márton Medgyesi and István György Tóth Chapter 3 Vulnerable Groups: The Situation of People with Migrant Backgrounds Orsolya Lelkes, Lucinda Platt and Terry Ward Chapter 4 The Risk of Poverty and Income Distribution at the Regional Level Terry Ward Chapter 5 Material Deprivation Terry Ward Chapter 6 Economic Growth and Income Inequalities Márton Medgyesi and István György Tóth Chapter 7 The Effect of Taxes and Benefits on Income Distribution Alari Paulus, Francesco Figari and Holly Sutherland Chapter 8 Distributional Effects of Publicly Funded Childcare Manos Matsaganis and Gerlinde Verbist Chapter 9 Policy Developments Affecting Income Distribution, Manos Matsaganis and Péter Szivós Bibliography Glossary Editors and Authors