Inequality in Europe: distribution of pre-tax national income in Europe 1980-2021

The period from 1980 to 2021 saw an increase in the share of national income in Europe taken by the top 10 percent of earners. This period has generally been categorized by economists as a period of rising income inequality, especially when compared with the postwar period (1945-1970s) in Europe which saw a compression of the income distribution, with the middle classes in particular making large gains. As financial and labor markets were liberalized in the 1980s and as the effects of economic globalization took hold, however, a growing share of income went to the top earners. This European trend mirrors increases in inequality across the globe during this period, with the United States seeing a particularly sharp rise in the share taken by its top one percent. Rising income inequality has been linked to the rise of populism in Europe throughout the 2000s and 2010s, as voters sought to hit back at economic elites.