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The Spatial Distribution of Income Inequality in the European Union

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  • Roberto Ezcurra
  • Pedro Pascual
  • Manuel Rapún

Abstract

In this paper we examine the distribution of income inequality among the regions of the European Union from 1993 to 2000. The results obtained show that the levels of inequality vary considerably between regions. Nevertheless, we have detected a high level of positive spatial dependence in the distribution under consideration. However, 57% of the regions considered registered no statistically significant variations in the degree of income dispersion over time, though there was a reduction in 40% of them. The empirical evidence presented indicates the existence of a process of regional convergence in terms of inequality during the period considered, mainly as a result of the evolution of regions whose initial levels of inequality were relatively high. Moreover, our analysis highlights the important roles played by the national component, activity, and unemployment rates, gross domestic product per capita, and the weight of the agricultural sector in total employment in accounting for differences in the degree of income dispersion across the European regions.

Suggested Citation

  • Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "The Spatial Distribution of Income Inequality in the European Union," Environment and Planning A, , vol. 39(4), pages 869-890, April.
    • Handle: RePEc:sae:envira:v:39:y:2007:i:4:p:869-890
    DOI: 10.1068/a3893
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    1. David Evers, 2008. "Reflections On Territorial Cohesion And European Spatial Planning," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(3), pages 303-315, July.
    2. Mathias Moser & Matthias Schnetzer, 2014. "The Geography of Average Income and Inequality: Spatial Evidence from Austria," Department of Economics Working Papers wuwp191, Vienna University of Economics and Business, Department of Economics.

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