European Integration and Inequality among Countries: A Lifecycle Income Analysis
AbstractWe analyze the effects of the expansions of the European Union on inequality over the period 1960-2005 using an approach based on individuals' lifecycle incomes. This allows us to estimate permanent incomes and consider the effect of both survival rates and different rates of economic growth. According to our estimates, inequality in terms of permanent income was substantially less than that actually observed in current per capita income at the time of almost all the expansions (1973, 1981, 1986, 1995) except those of the last ten years (from 2004 onwards). The results point to the key role of policies that stimulate growth in the less developed countries. In fact, according to our estimates, with an annual Ã âÃ¢â°Â¤-convergence of 2% in current income, inequality in permanent income would be one third lower.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 20 (2012)
Issue (Month): 1 (02)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
Other versions of this item:
- Serrano Martínez Lorenzo & Pastor Monsálvez José Manuel, 2009. "European Integration and Inequality among Countries: a Lifecycle income Analysis," Working Papers 201050, Fundacion BBVA / BBVA Foundation.
- Jose M. Pastor & Lorenzo Serrano, 2011. "European integration and inequality among countries: a lifecycle income analysis," ERSA conference papers ersa10p1424, European Regional Science Association.
- Pastor Monsálvez, José M. & Serrano, Lorenzo, 2009. "European integration and inequality among countries: a lifecycle income analysis," MPRA Paper 18510, University Library of Munich, Germany.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
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