Inequality in Europe: top one percent national income shares in Europe 1980-2021

The rising share of national income taken by the top one percent of earners is a common thread amongst almost all European countries over the past half century. As economic globalization took hold throughout the 1980s and 1990s, European countries experienced de-industrialization due to the emergence of international competitors, mostly in East Asia. At the same time, information technology and finance became much more important for most European economies, while growth in these sectors tends to favor high earners. This rise in inequality is also often also attributed to the ascendence of 'neoliberal' economic and political ideas which prioritized free markets and the privatization of government-owned businesses. 

Russia: the explosion of inequality after the fall of communism

Among the largest European economies, the Russian Federation stands out as the country which experienced the sharpest increase in inequality, as a small number of 'oligarchs' took control of the major industries after the collapse of the Soviet Union and the end of communist rule in 1991. The top one percent in Russia increased their share of national income five-fold over the 20 years from 1987 to 2007, when inequality in the country reached its peak as the oligarchs took home over a quarter of the country's income. 

Turkey: falling share of national income taken by top earners

Turkey has bucked the trend of the rising income share for the richest over this period, as its extremely concentrated income distribution has in fact become somewhat more equitable. The highest earners in Turkey saw their share of national income drop from almost 28 percent in the early 1980s, to a low of 17 percent in 2007, after which it has stabilized between 19 and 21 percent. 

Western Europe: gradually rising share of national income for the rich

The five western European democracies, Germany, France, Italy, Spain, and the United Kingdom, have all seen increases in their top earners' shares of national income over this period. The United Kingdom, Italy, and Germany have in particular seen their shares increase sharply, while Spain and France have experienced a more gradual increase.