Figure 8: Regional contributions to each country’s Theil index (2014 data) 5.1 Employment and productivity The distribution of inequality in the European Union can also be decom- posed into an employment and a productivity effect. Some interesting con- clusions arise. In Figure 10, we observe an ascending trend in inequality for countries belonging to the old EU „core“, which is most pronounced for EU-12, and to a slightly lesser extent, EU-15. The traditional driver of total inequality between countries and regions is productivity. However, the gap between productivity and employment has narrowed significantly in recent years, and has even been closed for EU-12 and EU-15 countries, with employment effects becoming the main source of inequality. This indicates that the countries belonging to the old EU core have been affected most by employment effects, in particular following the financial crisis of 2007. While disparities in productivity are decreasing in recent years for EU-12 and EU-15 regions, they have remained almost un- changed, whereas the distribution of employment is becoming more un- equal, in a manner significant enough to drive total inequality to rise. 180 Wirtschaft und Gesellschaft 44. Jahrgang (2018), Heft 2