Inequality and welfare

Working Paper 2015-384


We review the literature about inequality and welfare with a particular focus on whether Europe has a special sensitivity to these matters or specific outcomes. We argue that both statements are likely to be true which raises the possibility of a causal link. Europe has relatively good results in terms of inequality and welfare in comparison with other continents and more specifically America, because these issues matter for European people. Still, research needs to be fostered in at least 5 areas that are detailed at the end of this review. A specific attention is devoted to the contribution of other social sciences and natural sciences (cognitive science) to the development of our knowledge for these fields.

Authors: Alain Trannoy.

Keywords: Inequality, income inequality, equality of opportunity, welfare, well-being, Europe, the U.S.
JEL: D63, I31, P52, O51, O52.