During the last decade, overall income inequality in the European Union (EU) has remained stable. A closer look, however, reveals opposing developments between the real incomes of the young and the elderly. While before the global financial crisis, the young and the elderly faced similar risk of relative poverty, more recently, the risk of poverty increased significantly for the young and declined sharply for the elderly. What can explain this trend and which measures can policymakers adopt to ensure that today's young do not fall further behind the rest of the population? What new policies, if any, are necessary?
IMF will present the recent research paper “Inequality and Poverty Across Generations in Europe” and discuss possible policy solutions that could foster integration of the young into the labor market and provide better protection through re-design of social protection and taxation systems.