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European integration and inequality among countries: a lifecycle income analysis

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  • Pastor Monsálvez, José M.
  • Serrano, Lorenzo

Abstract

We analyze the effects of the expansions of the European Union on inequality using an approach based on individuals' lifecycle incomes. This allows us to consider the effect of different rates of growth and survival rates. This differs form the usual analyses of inequality that focus on the evolution of current per capita income for the period. Our results show that inequality in terms of permanent income was substantially less than in current per capita income at the time of all the expansions except those of the last ten years. The results point to the key role of policies that stimulate growth in the less developed countries. With an annual β-convergence of 2% in current income, inequality in permanent income would be one third lower.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18510.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:18510

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Keywords: Permanent income; inequality; European Union;

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Cited by:
  1. Álvarez, Inmaculada & Barbero, Javier, 2013. "Knowledge Spillovers in Neoclassical Growth Model: an extension with Public Sector," Working Papers in Economic Theory 2013/07, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).

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