Coping with Regional Inequality in Sweden: Structural Change, Migrations and Policy, 1860-2000
AbstractIn many countries, regional income inequality has followed an inverted U-shaped curve, growing during industrialisation and market integration and declining thereafter. By contrast, Sweden’s regional inequality dropped from 1860 to 1980 and did not show this U-shaped pattern. Accordingly, today’s regional income inequality in Sweden is lower than in other European countries. We note that the prime mover behind the long-run reduction in regional income differentials was structural change, whereas neo-classical and technological forces played a relatively less important role. However, this process of regional income convergence can be divided into two major periods. During the first period (1860-1940), the unrestricted action of market forces, particularly the expansion of markets and high rates of internal and international migrations, led to the compression of regional income differentials. In the subsequent period (1940-2000), the intended intervention of successive governments appears to have also been important for the evolution of regional income inequality. Regional convergence was intense from 1940 to 1980. In this period, governments aided the convergence in productivity among industries and the reallocation of the workforce from the declining to the thriving regions and economic sectors. During the next period (1980-2000), when regional incomes diverged, governments subsidised firms and people in the declining areas.
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Bibliographic InfoPaper provided by European Historical Economics Society (EHES) in its series Working Papers with number 0029.
Length: 41 pages
Date of creation: Oct 2012
Date of revision:
Convergence; regional policy; neo-classical growth model; labour reallocation.;
Other versions of this item:
- Kerstin Enflo & Joan R. Rosés, 2012. "Coping with regional inequality in Sweden : structural change, migrations and policy, 1860-2000," Working Papers in Economic History wp12-09, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
- Enflo, Kerstin & Rosés, Joan, 2012. "Coping with Regional Inequality in Sweden: Structural Change, Migrations and Policy, 1860-2000," Lund Papers in Economic History 122, Department of Economic History, Lund University.
- N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
- N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-11 (All new papers)
- NEP-GEO-2012-11-11 (Economic Geography)
- NEP-HIS-2012-11-11 (Business, Economic & Financial History)
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