There is growing concern in Europe over the impact of globalization on high and evenly
shared living standards. These concerns have often surfaced in response to falling
income shares in aggregate national income data. However, these data may tell little
the underlying distribution of incomes based on household disposable incomes. While
summary measures of income distributions also suggest that inequality has increased
industrialized countries, this development was very uneven and much less pronounced
euro-area countries, suggesting that broad phenomena such as trade liberalization
technological change may not be major drivers of inequality.