Economic inequality - a growing issue

The focus of this chapter is the rising inequality that is seen as a key challenge for many welfare states and must be expected to continue in the years to come. A number of different issues can contribute to inequality. The focus here is mainly on more affluent welfare states, and the degree and change in economic inequality is central. How to measure the degree of inequality methodically is shown, while also providing a brief overview of the development of inequality in the European welfare states. The consequences of inequality are examined, including whether they are due to political decisions or changes of, for example, a demographic nature. Lastly, the possible instruments welfare states may have to influence the degree of inequality are discussed