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Who shares in the European sharing economy?

Hernan Winkler's picture
Data on the sharing economy (Uber, Airbnb and so on) are scarce, but a recent study estimates that the revenue growth of these platforms has been dramatic. In the European Union (EU), the total revenue from the shared economy increased from around 1 billion euros in 2013 to 3.6 billion euros in 2015. While this estimate may equal just 0.2% of EU GDP, recent trends indicate a continued, rapid expansion.

This is important, as the sharing economy has the potential to bring efficiency gains and improve the welfare of many individuals in the region.

This can also generate important disruptions.

While online platforms represent a small fraction of overall incomes, the share of individuals participating in these platforms is large in many European countries. For example, roughly 1 in 3 people in France and Ireland have used a sharing economy platform, while at least 1 in 10 have in Central and Northern Europe (see figure below).

At the same time, the share of the population that has used these platforms to offer services and earn an income is also significant, reaching 10% or more in France, Latvia, and Croatia. This means that at least one out of every ten adults in these countries worked as a driver for a ride-sharing platform such as Uber, rented out a room of his or her house using a peer-to-peer rental platform such as Airbnb, or provided ICT services through an online freelancing platform such as Upwork, to name a few examples.

A mixed report: How Europe and Central Asian Countries performed in PISA

Cristian Aedo's picture
 Aigul Eshtaeva / World Bank
While more ECA program countries are participating in the PISA assessment of 15-year-old students' skills, education poverty in these countries has only slightly declined since 2000. (Photo: Aigul Eshtaeva / World Bank)

Recently, the OECD released the results for PISA 2015, an international assessment that measures the skills of 15-year-old students in applying their knowledge of science, reading, and mathematics to real-life problems. There is a sense of urgency to ensure that students have solid skills amidst modest economic growth and long-term demographic decline in Europe and Central Asia (ECA).

The economic benefits of LGBTI inclusion

Georgia Harley's picture
Civil Rights Defenders/Photo: Vesna Lalic
Civil Rights Defenders/Photo: Vesna Lalic
Discrimination against lesbian, gay, bisexual, transgender and intersex (LGBTI) people is an all too familiar story. Members of this community are frequent targets of violence and other human rights abuses, and often face prejudice and hardship at work, in their communities, and at home.

Action is needed to address these problems and ensure that everyone – regardless of race, gender, age, sexual orientation, or gender identity - has an equal chance to live a healthy and prosperous life
This is not only the right thing to do, it also makes economic sense: a growing body of evidence indicates that discrimination against LGBTI people has a negative economic impact on society.

Don’t sweat the small stuff – lessons from European courts

Georgia Harley's picture

Last year, we posted a blog – Resolving Minor Disputes Matters Big Time for the Poor – which highlighted how courts can fast-track minor disputes to deliver faster, cheaper and more appropriate justice and how – for the poor and for micro and small businesses – this may be their only path to justice. 

Increasingly, citizens and businesses demand fast-tracking services for small cases and, according to Doing Business data, 138 economies have a small claims procedure of some kind. So courts across the world are eager to learn how to roll out such reforms – either to introduce a fast track procedure or to improve on an existing one.

Assessing disaster risk in Europe and Central Asia – what did we learn?

Alanna Simpson's picture
Heavy rains on June 13-14, 2015 caused a 1 million cubic-meter landslide to flow down the Vere River valley and damage the capital city of Tbilisi, Georgia. (Photo via Wikimedia Commons)
Across the Europe and Central Asia region today, policymakers are confronted daily with a wide range of development challenges and decisions, but the potential impacts of adverse natural events and climate change – such as earthquakes or flooding – may not always be first and foremost in their thoughts.

Admittedly, the region does not face the same daunting disaster risks as some other parts of the world – especially in South Asia, East Asia and Latin America – but nevertheless, it is far from immune to the effects of natural hazards – as the past clearly reminds us.

To reinvigorate Europe, we need more integration… of services

Doerte Doemeland's picture


To reinvigorate growth in Europe, European Central Bank President Mario Draghi called for more common projects in the European Union (EU). And he emphasized that these efforts need to meet a set of minimum bars: they should “…focus on those actions that deliver tangible and immediately recognisable results… [they] should complement the actions of governments; they should be clearly linked to people’s immediate concerns; they should unequivocally concern matters of European or global significance.”

We couldn’t agree more.

Middle class jobs are thriving in Central and Eastern Europe

Roma Keister's picture
Photo: Tomislav Georgiev / World Bank

Exponential increases in automation, computerization and digitization is having a profound impact on many people’s jobs. Branko Milanovic’s recent work on global inequality has shown extent to which the lower-middle class jobs in developed countries are being replaced by technology. In particular, economists argue that middle-skilled, routine-intensive jobs are being hollowed-out. And indeed, in Western European countries and the US there has been a decrease in the intensity of routine tasks – both manual and cognitive. However, in Central and Eastern European (CEE) countries, the amount of routine cognitive work has been on the rise. And the pay for these workers has increased faster than for high skilled workers. Why is this happening, when in the most advanced economies the opposite is happening?

From forgotten Yugos to new engines of growth: Reviving the car industry in South East Europe

John Mackedon's picture
The former Yugoslavia was mainly known for its not-so-successful and cheap cars, primarily the Yugo. In its review of the 50 worst cars of all time, Time magazine referred to the Yugo GV as the “Mona Lisa of bad cars.”

Nevertheless, the car industry played an important role in the economic development of the socialist Yugoslavia, representing a big employer across all former Yugoslav republics. The onset of war in the early 1990s dealt a significant blow to the car industry there, with most the production facilities closing down by the end of that decade.

And then, in the early 2000s, car companies began opening new facilities in the immediate neighborhood (Hungary, Romania, Slovakia, Slovenia) and the region began producing world renowned brands such as Audi, Mercedes Benz, Renault, and Suzuki. This represented a new opportunity for manufacturers from the region to enter new supply chains - relying on skilled and experienced labor. On top of this, FIAT also opened a new factory in Serbia, further spurring demand for locally produced automotive parts.
 

Improving opportunities for Europe’s Roma children will pay off

Mariam Sherman's picture
Roma child, Romania. Photo by Jutta Benzenberg

Eight years on from the start of the global economic crisis, close to one quarter of the European Union’s population remains at risk of poverty or social exclusion. But one group in particular stands out: Europe’s growing and marginalized Roma population.

The equivalent figure for Roma children stands at 85 percent in Central and Southeastern Europe. Living conditions of marginalized Roma in this region are often more akin to those in least developed countries than what we expect in Europe.

A fresh look at the global financial crisis and poverty trends in the EU

Doerte Doemeland's picture


When development practitioners such as ourselves think of poverty, the EU is not what comes to mind first. While it is true that average incomes are higher in Europe than in most regions of the world, it is also true that the 2008 global financial crisis had a huge impact on the welfare of the most vulnerable in many countries in the region.


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