In fact, the OECD highlights that reducing inequality by one Gini point would translate into an accumulated increase in growth of 0.8% during the following five years. In this respect, Europe has moved in the opposite direction. Between 2005 and 2015, the Gini coefficient rose from 30.6 to 31 and income disparities between the top and bottom 20% have increased from 4.7 to 5.2. As the proportion of people at risk of social exclusion is closely related to income inequality, poverty has grown constantly since 2005, and between 2008 and 2014 several member states experienced an increase in inequality in terms of household disposable income.
While one of the five goals of the Europe 2020 strategy aspired to reducing by at least 20 million the number of people in or at risk of poverty and social exclusion (from 115.9 million in 2008 to 95.9 million in 2020), in 2015 these citizens already accounted for 117.6 million in the EU-28. Moreover, 32.2 million disabled people were at risk of poverty and social exclusion in 2010, as well as 26.5 million children, taking the overall percentage to unacceptably high levels (23.7%). The rise in inequality since the economic crisis has especially impacted women, exacerbating poverty among them and excluding them even more from the labour market.
Several factors have contributed to getting us into this situation. The extensive changes in the labour market should be at the centre of our worries: the proliferation of “atypical” jobs, the weakening of collective bargaining, the deterioration in working conditions, increased temporary working, and policies of internal wage devaluation. In short, the labour market has stopped being a stable source of prosperity for many people.
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