European Integration and Inequality among Countries: A Lifecycle Income Analysis
AbstractWe analyze the effects of the expansions of the European Union on inequality using an approach based on individuals' lifecycle incomes. This allows us to consider the effect of different rates of growth and survival rates. This differs form the usual analyses of inequality that focus on the evolution of current per capita income for the period. Our results show that inequality in terms of permanent income was substantially less than in current per capita income at the time of all the expansions except those of the last ten years. The results point to the key role of policies that stimulate growth in the less developed countries. With an annual Î²-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:
- 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.
- 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.
- 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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