The income gap between the generations in Europe has deepened to the detriment of young people and without any adequate policies. This is apparent from a study published Tuesday by the International Monetary Fund.
"If we do not act, a generation may never recover." The formula is Christine Lagarde, Executive Director of the IMF in a blog dedicated to inequality and poverty in Europe. In a study released Wednesday, the Washington institution shows that since 2007, the income of young people aged 18 to 24 years have stagnated, while those aged 65 and over have increased by 10%. The former economy minister Nicolas Sarkozy, underlines that today, "nearly one in five young people is still looking for work in Europe." While stating that it is not a question of opposing one group to another.
To reduce the income gap between generations, Christine Lagarde suggests relying on examples of European success. This is particularly the case in Germany, where apprenticeship programs have a long history of successfully integrating young people into the labor market. "Another good example", according to her, is that of Portugal, which exempts the first job of social taxes for three years. "Even if unemployment remains high, this measure is going in the right direction," she concludes.
The Danish example
In a text published in 2016 from the book "What to do against inequalities? 30 experts commit »Camille Peugny, a sociologist and lecturer at Paris 8 University, suggested several alternatives to reduce the income gap between generations. In particular, he cites the Danish example, where every young person in higher education "sees the right open to sixty good monthly training without means test". Each voucher is worth 750 euros and can be combined with housing assistance. It also suggests the establishment of a universal right for young people by bringing together the aid that young people receive. According to him, this device would reduce the cost of access to autonomy of young people on families, and thus avoid reproducing inequalities.
- Three years after entering the market, one in five young people are unemployed
- Youth unemployment rate rises in the world