Chapter 4 Historical perspectives on income distribution: The case of Europe The evolution of income distribution over two centuries is an attractive topic because it allows one to test the inverse U curve hypothesis using long series instead of cross section data. In Section 1 the distribution trends in countries where global data are available is considered that is in four Scandinavian countries the Netherlands the German states and Germany and in France. The inverse U curve hypothesis is verified in four of them. Section 2 presents in a consistent framework using the Theil indicator all available information on inequality trends between agricultural and nonagricultural sectors and on inequality trends within each sector in European countries. Finally Section 3 throws light on the political and economic factors explaining the long term evolution of distribution. The economic factors playing a key role are the market structures the diffusion of education and saving and dualism.