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

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Author Info
Juan Antonio Duro Moreno () (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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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
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Handle: RePEc:uab:wprdea:wpdea0411

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Keywords: regional inequality inequality decomposition

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Find related papers by JEL classification:
D39 - Microeconomics - - Distribution - - - Other
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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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.:
  1. Duro Moreno, Juan Antonio, 2001. "Cross-Country Inequalities in Aggregate Welfare: Some Evidence," Applied Economics Letters, Taylor and Francis Journals, vol. 8(6), pages 403-06, June. [Downloadable!] (restricted)
  2. Ram, Rati, 1992. "Interstate Income Inequality in the United States: Measurement, Modelling and Some Characteristics," Review of Income and Wealth, Blackwell Publishing, vol. 38(1), pages 39-48, March.
  3. Mick Dunford, 1993. "Regional Disparities in the European Community: Evidence from the REGIO Databank," Regional Studies, Taylor and Francis Journals, vol. 27(8), pages 727-743, January. [Downloadable!] (restricted)
  4. Peter Gripaios & Terry Mangles, 1993. "An Analysis of European Super Regions," Regional Studies, Taylor and Francis Journals, vol. 27(8), pages 745-750, January. [Downloadable!] (restricted)
  5. Raffaele 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. [Downloadable!]
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  6. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July. [Downloadable!] (restricted)
  7. Sala-i-Martin, Xavier X., 1996. "Regional cohesion: Evidence and theories of regional growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1325-1352, June. [Downloadable!] (restricted)
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  8. 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. [Downloadable!] (restricted)
  9. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April. [Downloadable!] (restricted)
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  10. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-40, June. [Downloadable!] (restricted)
  11. Sala-i-Martin, Xavier, 1994. "Cross-sectional regressions and the empirics of economic growth," European Economic Review, Elsevier, vol. 38(3-4), pages 739-747, April. [Downloadable!] (restricted)
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  12. 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. [Downloadable!] (restricted)
  13. Ram, Rati, 1995. ""Nominal" and "Real" Interstate Income Inequality in the United States: Some Additional Evidence," Review of Income and Wealth, Blackwell Publishing, vol. 41(4), pages 399-404, December.
  14. 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. [Downloadable!] (restricted)
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Cited by:
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  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. [Downloadable!]
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