policymakers demonstrate

12 Inequality and Welfare: Is Europe Special?
Alain Trannoy
In Memoriam of Tony Atkinson
Abstract
This chapter reviews the literature about inequality and welfare with a particular
focus on whether Europe has a special sensitivity to these matters or specific
outcomes. It is argued 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.
Specific attention is devoted to the contribution of other social sciences and
natural sciences (cognitive science) to the development of our knowledge for
the field of inequality and welfare.
12.1 Introduction
Distribution and redistribution issues have never left the European stage either
in public debate or on the research agenda in economics and other social sciences.
The novelty comes from the US where public opinion is changing dramatically.
While for a long time inequality was not considered a hot topic,
and correlatively a benign-neglect public policy seemed to be in force, rising
inequality is attracting the attention of the media, of the public and of politicians
in the US, as testified by the huge success of Piketty’s masterpiece Capital in the
Twenty First Century. Since to some extent the political agenda of each society
is reflected in the scientific agenda of researchers through inclination and public
funding, it is not surprising that Europe is challenging the US in many areas
regarding inequality and welfare. Having said that, our understanding of the
dynamics of inequality does not match the needs required by well-calibrated
economic and social policies.
This chapter will be structured around the points mentioned in COEURE’s
call for expression of interest. All issues may be encompassed in a broader
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