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Convergence of income distributions: Total and inequality-affecting changes in the EU

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  • Kvedaras, Virmantas
  • Cseres-Gergely, Zsombor

Abstract

By adapting the statistical framework suggested by Székely and Rizzo (2004) and considering the convergence of income distributions instead of aggregate (e.g., average) income, we exploit the scale-independence property of proper inequality metrics to evaluate not only the total but also the inequality-affecting (shape-influenced) convergence of income distributions. We illustrate the application using Monte Carlo experiments and characterizing the convergence of net equivalized income distributions among European Union member states.

Suggested Citation

  • Kvedaras, Virmantas & Cseres-Gergely, Zsombor, 2020. "Convergence of income distributions: Total and inequality-affecting changes in the EU," Economics Letters, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:ecolet:v:188:y:2020:i:c:s0165176520300057
    DOI: 10.1016/j.econlet.2020.108946
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    10. Cseres-Gergely, Zsombor & Kvedaras, Virmantas, 2019. "Change and convergence of income distributions in the European Union during 2007-2014," Working Papers 2019-13, Joint Research Centre, European Commission.
    11. Chambers, Dustin & Dhongde, Shatakshee, 2016. "Convergence in income distributions: Evidence from a panel of countries," Economic Modelling, Elsevier, vol. 59(C), pages 262-270.
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    Citations

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    Cited by:

    1. Garashchuk, Anna & Castillo, Fernando Isla & Rivera, Pablo Podadera, 2023. "Economic cohesion and development of the European Union's regions and member states - A methodological proposal to measure and identify the degree of regional economic cohesion," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    2. Kvedaras, Virmantas & Cseres-Gergely, Zsombor, 2021. "China’s WTO accession and income inequality in European regions: External pressure and internal adjustments," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 34-53.
    3. Tomasz Serwach, 2023. "The European Union and within‐country income inequalities. The case of the new member states," The World Economy, Wiley Blackwell, vol. 46(7), pages 1890-1939, July.
    4. Claudia Suárez‐Arbesú & Nicholas Apergis & Francisco J. Delgado, 2023. "Club convergence and factors of income inequality in the European Union," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 3654-3666, October.
    5. Tomasz Serwach, 2022. "The European Union and within-country income inequalities. The case of the New Member States," Working Papers hal-03548416, HAL.

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    More about this item

    Keywords

    Convergence; Distribution; European Union; Income; Inequality;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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