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Regional Income Inequalities in Europe: An Updated Measurement and Some Decomposition Results

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  • J.A. Duro

    ()
    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

Abstract

In this paper well-known summary inequality indexes are used to explore interregional income inequalities in Europe. In particular, we mainly employ Theils’population-weighted index because of its appealing properties. Two decomposition analysis are applied. First, regional inequalities are decomposed by regional subgroups (countries). Second, intertemporal inequality changes are separated into income and population changes. The main results can be summarized as follows. First, data confirm a reduction in crossregional inequality during 1982-97. Second, this reduction is basically due to real convergence among countries. Third, currently the greater part of European interregional disparities is within-country by nature, which introduce an important challenge for the European policy. Fourth, inequality changes are due mainly to income variations, population changes playing a minor role.

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Bibliographic Info

Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea0411.

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Length: 46 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:uab:wprdea:wpdea0411

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Keywords: regional inequality; inequality decomposition;

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References

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  3. Goerlich Gisbert, Francisco J., 2001. "On factor decomposition of cross-country income inequality: some extensions and qualifications," Economics Letters, Elsevier, vol. 70(3), pages 303-309, March.
  4. Juan Antonio Duro Moreno, 2001. "Cross-country inequalities in aggregate welfare: some evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 403-406.
  5. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
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  7. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
  8. R. Paci, 1996. "More similar and less equal. Economic growth in the European regions," Working Paper CRENoS 199609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  9. Ram, Rati, 1995. ""Nominal" and "Real" Interstate Income Inequality in the United States: Some Additional Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(4), pages 399-404, December.
  10. Champernowne, D G, 1974. "A Comparison of Measures of Inequality of Income Distribution," Economic Journal, Royal Economic Society, vol. 84(336), pages 787-816, December.
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Cited by:
  1. Giuseppe Arbia & Laura De Dominicis & Gianfranco Piras, 2005. "The relationship between Regional Growth and Regional Inequality in EU and transition countries - a Spatial Econometric Approach," ERSA conference papers ersa05p168, European Regional Science Association.
  2. Diego Puga, 2008. "Agglomeration and cross-border infrastructure," Working Papers 2008-06, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  3. Zofío, José Luis & Condeço-Melhorado, Ana M. & Maroto-Sánchez, Andrés & Gutiérrez, Javier, 2011. "Decomposing generalized transport costs using index numbers: A geographical analysis of economic and infrastructure fundamentals," Working Papers in Economic Theory 2011/06, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
  4. Yvonne Sperlich & Stefan Sperlich, 2012. "Income Development and Sigma convergence in South–South Agreement Areas," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 12031, Institut d'Economie et Econométrie, Université de Genève.
  5. Christ, Julian P., 2010. "Geographic concentration and spatial inequality: Two decades of EPO patenting at the level of European micro regions," Violette Reihe Arbeitspapiere 32/2010, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
  6. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," Journal of Economic Inequality, Springer, vol. 8(3), pages 323-344, September.
  7. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 597-624, November.
  8. Philippe Martin, 2005. "The geography of inequalities in Europe," Sciences Po publications info:hdl:2441/9283, Sciences Po.

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