Incomes for Europe’s youth declined after the 2007 global financial crisis—largely due to unemployment. And while things have recovered somewhat, the trend toward short-term work and less stable jobs has meant incomes have not grown and young people are now more likely to fall into poverty. Meanwhile, Europeans 65 and older have seen incomes increase by 10 percent. New research by IMF staff looks at this Growing Inequality and Poverty Across Generations in Europe, and how it could have long term effects on Europe’s economy. In this podcast, coauthor Alexander Pitt says when the young are better off, we’re all better off.
Alexander Pitt, Senior Economist in the IMF’s European department, and co-author of A Dream Deferred: Inequality and Poverty Across Generations in Europe.