Advanced Search
MyIDEAS: Login to save this paper or follow this series

Coping with Regional Inequality in Sweden: Structural Change, Migrations and Policy, 1860-2000

Contents:

Author Info

  • Enflo, Kerstin

    ()
    (Department of Economic History, Lund University)

  • Rosés, Joan

    ()
    (Departamento de Historia Económica e Instituciones and Instituto Figuerola, Universidad Carlos III de Madrid)

Abstract

In 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ekh.lu.se/media/ekh/forskning/lund_papers_in_ecomonic_history/122.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Kerstin Enflo) or (Benny Carlsson)
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economic History, Lund University in its series Lund Papers in Economic History with number 122.

as in new window
Length: 44 pages
Date of creation: 25 Oct 2012
Date of revision:
Handle: RePEc:hhs:luekhi:0122

Contact details of provider:
Postal: Department of Economic History, Lund University, Box 7083, S-220 07 Lund, Sweden
Phone: +46 46-222 00 00
Fax: +46 46-13 15 85
Web page: http://www.ekh.lu.se/
More information through EDIRC

Related research

Keywords: Convergence; regional policy; neo-classical growth model; labour reallocation;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Taylor, Alan M & Williamson, Jeffrey G, 1994. "Capital Flows to the New World as an Intergenerational Transfer," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 348-71, April.
  2. Badia-Miró, Marc & Guilera, Jordi & Lains, Pedro, 2012. "Regional Incomes in Portugal: Industrialisation, Integration and Inequality, 1890-1980," Revista de Historia Económica, Cambridge University Press, vol. 30(02), pages 225-244, September.
  3. Roses, Joan R. & Sanchez-Alonso, Blanca, 2004. "Regional wage convergence in Spain 1850-1930," Explorations in Economic History, Elsevier, vol. 41(4), pages 404-425, October.
  4. Rosés, Joan Ramón & Martínez-Galarraga, Julio & Tirado, Daniel A., 2010. "The upswing of regional income inequality in Spain (1860-1930)," Explorations in Economic History, Elsevier, vol. 47(2), pages 244-257, April.
  5. Martin Henning & Kerstin Enflo & Fredrik NG Andersson, 2010. "Trends and cycles in regional economic growth : how spatial differences formed the Swedish growth experience 1860-2009," Working Papers in Economic History wp10-10, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  6. M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
  7. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  8. Duro, Juan Antonio & Esteban, Joan, 1998. "Factor decomposition of cross-country income inequality, 1960-1990," Economics Letters, Elsevier, vol. 60(3), pages 269-275, September.
  9. Henning, Martin & Enflo, Kerstin & Andersson, Fredrik N.G., 2011. "Trends and cycles in regional economic growth," Explorations in Economic History, Elsevier, vol. 48(4), pages 538-555.
  10. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  11. Nicholas Crafts, 2005. "Regional Gdp In Britain, 1871-1911: Some Estimates," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 54-64, 02.
  12. Ravi Kanbur & Tony Venables, 2005. "Introduction: Spatial inequality and development," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 1-2, January.
  13. Bohlin, Jan & Eurenius, Anna-Maria, 2010. "Why they moved -- Emigration from the Swedish countryside to the United States, 1881-1910," Explorations in Economic History, Elsevier, vol. 47(4), pages 533-551, October.
  14. Kerstin Enflo & Martin Henning & Lennart Schön, 2010. "Swedish regional GDP 1855-2000 : estimations and general trends in the Swedish regional system," Working Papers in Economic History w10-03, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  15. Frank Geary & Tom Stark, 2002. "Examining Ireland"s Post--famine Economic Growth Performance," Economic Journal, Royal Economic Society, vol. 112(482), pages 919-935, October.
  16. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  17. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence Across States and Regions," Papers 629, Yale - Economic Growth Center.
  18. Emanuele Felice, 2011. "Regional value added in Italy, 1891–2001, and the foundation of a long‐term picture," Economic History Review, Economic History Society, vol. 64(3), pages 929-950, 08.
  19. Peter Howitt, 2000. "Endogenous Growth and Cross-Country Income Differences," American Economic Review, American Economic Association, vol. 90(4), pages 829-846, September.
  20. Holmlund, Bertil & Dahlberg, Ake, 1978. " Internal Labor Migration in Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 80(1), pages 104-12.
  21. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
  22. Sicsic, Pierre, 1992. "City-Farm Wage Gaps in Late Nineteenth-Century France," The Journal of Economic History, Cambridge University Press, vol. 52(03), pages 675-695, September.
  23. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. Historical Economic Geography

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hhs:luekhi:0122. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kerstin Enflo) or (Benny Carlsson).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.