Economic inequality has been extensively researched by philosophers, statisticians, political theorists, sociologists, and economists, gaining particular importance in recent years, especially in Europe. This treatise compiles studies analyzing inequality from both theoretical and empirical perspectives. It begins by thoroughly characterizing various methods for comparing income distributions, discussing indices that range from simple statistical measures to the generalized entropy class. Central to the analysis are the inequality measures frequently used in empirical studies, particularly the Gini coefficient and the Atkinson family of indices, which are examined from both positive and normative viewpoints. The discussion concludes with an introductory look at the axiomatic approach to inequality measurement, assessing specific properties that an index should fulfill. The second part focuses on recent empirical evidence regarding income inequality in Europe, highlighting the diverse levels of inequality across nations and the predominant rising trend in disposable income inequality. Additionally, it addresses the lack of research on an 'Europe-wide' income distribution. The final section examines inequality in European transition countries, revealing a significant increase in income inequality during the transition process.
