By OECD, 2017
The socio-economic divide has been on the rise in Europe over the past decades, and has intensified since the onset of the global financial crisis. High and rising inequality harms our societies in many respects, not least in terms of economic growth. It can hamper social cohesion, results in lost opportunities for many, and can even result in worse health outcomes.
Inequality can also lower social trust in in institutions and fuel political and social instability, in a number of ways. First, the higher the level of economic inequality, the higher will be the “social barriers” between groups and the less individuals will feel familiar with and connect to other people. Second, inequality may generate a perception of injustice: it is difficult to develop trust in others if they are seen as having unfair advantages. Finally, unequal communities may disagree over how to share (and finance) public goods, and those disagreement can turn break social ties and lessen social cohesion. Broken trust can lead to intolerance and discrimination and there is growing concern across European countries and more globally over the association with political instability.
 OECD (2017) Understanding the Socio-Economic Divide in Europe | [ ] |
