Inequality and Unemployment Patterns in Europe: Does Integration Lead to (Real) Convergence?

Does Inequality lead to Conflict ?

This paper presents a simple model to show how distributional concerns can engender social conflict. We have a two period model, where the cost of conflict is endogenous in the sense that parties involved have full control over how much conflict they can create. We find that anticipated future inequality plays a crucial role in determining the level of conflict in the current period. The model ...

Does Unemployment Lead to Greater Alcohol Consumption?

Using panel data from Waves 1 and 2 of the NESARC, we estimate gender-specific effects of changes in employment status on overall alcohol consumption, binge drinking episodes, and a diagnosis of alcohol abuse and/or dependence. We employ various fixed-effects models to address potential bias from unobserved and time-invariant individual heterogeneity. All results show a positive and significant...

Does Income Inequality Lead to Consumption Inequality? Evidence and Theory1

Using data from the Consumer Expenditure Survey, we ...rst document that the recent increase in income inequality in the United States has not been accompanied by a corresponding rise in consumption inequality. Much of this divergence is due to di¤erent trends in within-group inequality, which has increased signi...cantly for income but little for consumption. We then develop a simple framework...

1 Inequality and Unemployment in Europe : The American Cure

In this paper we show that inequality and unemployment are related positively across the European continent, within countries, between countries and through time. This contradicts the often-repeated view that unemployment in Europe is attributable to rigid wage structures, high minimum wages and generous social welfare systems. In fact, countries that possess the low inequality such systems pro...

Does slow growth lead to rising inequality?