Labour market policy thematic review 2017 : an in-depth analysis of the impact of reforms on inequality : synthesis report

This Review performs an analysis of the impact of recent reforms on inequality in Europe. The information in this synthesis report is based principally on information collected through country articles from 27 countries, prepared as part of the European Centre of Expertise (ECE) Thematic Review on Inequalities. The report considers the impact of reforms both on income inequalities and on inequality of opportunity. Income inequality is associated with inequality of opportunities, such as the absence of equitable access to high-quality education and training, quality healthcare, good housing, or access to credit. Insufficient health care and limited access to (good quality) childcare can also be contributing factors. These can have an impact at the early stages of an individual's life and, in turn, have implications for later in life -for instance on employment status (employment, unemployment, or inactivity), type of contract (temporary or permanent), wages or hours worked (part-time versus full-time). They also have a bearing on the accumulation of human and social capital. These elements determine earnings (including wages) inequality, seen as ex-ante or market inequality. Inequality of disposable income (inequality of outcomes or ex-post inequality) is then to a large extent determined by the design and impact of tax and benefits systems, which are also important to cushion the effects of weaker economic situations. Tax and benefit systems in the EU have an important role in reducing earnings inequality (market inequality) through their progressive and redistributive role. Inequality, being a multidimensional concept, can be influenced by policy changes in numerous policy areas. The experts preparing national contributions were asked to consider a selection of reforms, mainly from 2015 and 2016, that have had or are expected to have a significant impact on increasing or reducing inequalities in the following seven policy areas: - Labour market segmentation; - Wages/Labour and non-labour costs; - Promoting reforms of welfare systems for efficient distribution; - Fairer and more progressive tax systems; - Investing in human capital and promoting access to education and skills over the life course; - Access to healthcare; - Promoting the participation of women and other groups in the labour market and fighting discrimination. This synthesis report highlights key reforms discussed in the country articles in the above seven policy areas.