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A Social Model Employment Efficiency and Income Distribution Index

Labour market performance as measured by employment rates and inequality of income distribution show significant differences among EU countries. In 2014, the variation in employment rates was between 48.8% in Greece and 74.4% in Sweden; S80/S20 income quintile share ratios ranged from 3.4 in Czech Republic to 6.6 in Bulgaria, Romania and Greece in 2013. To some extent, labour market and social institutions may account for these differences. Implemented social models in Europe differ from each other by different combinations of policies and institutions.

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Will recent EU Association Agreements encourage institutional change?

Richard Frensch (Regensburg)

Recent EU Association Agreements, concluded with Ukraine, Moldova and Georgia, are steps towards deeper liberalization to foster trade and encourage welfare gains from more trade. Of course, there is also much implicit hope that more trade will pave the way for better institutional arrangements to secure gains from trade, i.e., to positively impact the quality of those countries’ domestic, especially legal,  institutions, as usually summarized by the Rule of Law.