Divided Continent: Unraveling the Roots of Income Polarization in Europe

The issue of polarization, as opposed to inequality, has been little explored for European countries. in this paper, using harmonized data produced by Luxembourg Income Study Database, observes income trends for 12 European countries, showing an increase in polarization in many of the countries considered. the drivers that led to this concentration of income are also analyzed, noting heterogeneous factors within countries.