International debate has recently focused on increased inequalities and the adverse effects they may have on both social and economic developments. Income inequality, now at its highest level for the past half-century, may not only undermine the sustainability of European social policy but also put at risk Europe’s sustainable recovery. A common feature of recent reports on inequality (ILO, OECD, IMF, 2015–17) is their recognition that the causes emerge from mechanisms in the world of work. The purpose of this book is to investigate the possible role of industrial relations, and labour policies more generally, in reducing these inequalities.

This book aims to answer a number of important questions. To what extent have European countries converged or diverged with EU-wide economic and social indicators over the past 20 years? What have been the drivers of convergence? Why do some countries lag behind, while others experience continuous upward convergence? Why are these trajectories not always linear? Particular attention is paid to the role of institutions, actors and industrial relations – focusing on the resources and strategies of governments, employers and trade unions – in nudging EU countries onto an upward convergence path.