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Pay Inequality in Europe 1995-2000: Convergence Between Countries and Stability Inside

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  • James Galbraith
  • Enrique Garcilazo
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    Abstract

    This paper measures pay inequality in the EU during the convergence process to the Monetary Union. The decomposability property of Theil's T statistic permits us to construct a three-level hierarchical panel data set of pay inequalities for the years 1995-2000: between and within regions, countries, and for the European continent as a whole. We find a marked pattern of declining pay inequality across Europe for this period, which is due mainly to the rising (initially, negative) position of the United Kingdom and decreasing positive position of Germany.

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    File URL: http://eaces.liuc.it/18242979200502/182429792005020201.pdf
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    Bibliographic Info

    Article provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.

    Volume (Year): 2 (2005)
    Issue (Month): 2 (December)
    Pages: 139-175

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    Handle: RePEc:liu:liucej:v:2:y:2005:i:2:p:139-175

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    Keywords: Inequality; Unemployment; Wage Level and Structure; Europe; Regional Labor Markets;

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    1. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 1019-36, July.
    2. Beblo, Miriam & Knaus, Thomas, 2001. "Measuring Income Inequality in Euroland," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 301-20, September.
    3. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 33(1), pages 47-65, 03.
    4. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 2(4), pages 373-406, October.
    5. James K. Galbraith & Hyunsub Kum, 2005. "Estimating The Inequality Of Household Incomes: A Statistical Approach To The Creation Of A Dense And Consistent Global Data Set," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 115-143, 03.
    6. Sapir, Andre & Aghion, Philippe & Bertola, Giuseppe & Hellwig, Martin & Pisani-Ferry, Jean & Rosati, Dariusz & Vinals, Jose & Wallace, Helen, 2004. "An Agenda for a Growing Europe: The Sapir Report," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199271498, October.
    7. Michael Happich & Kurt Geppert, 2003. "A note on regional convergence within the EU," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 10(8), pages 523-525.
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    Cited by:
    1. Cristiano Perugini & Gaetano Martino, 2008. "Income Inequality Within European Regions: Determinants And Effects On Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 373-406, 09.

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