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Mobility and regional inequality in the European Union: Implications for economic policy

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  • Ezcurra, Roberto
  • Gil, Carlos

    ()

  • Pascual, Padro

    ()

  • Rapun, Manuel

    ()

Abstract

The aim of this paper is to analyse the mobility of per capita income distribution in the European regions during the period 1977-1996. In doing so we will attempt highlight some aspects of the nature of interregional inequality. We also hope to draw inferences that might be applied by European regional policy makers. If, for example, there proves to be very little mobility, this might mean that the regional positions are consolidated. If this were the case, a belligerent regional policy could be introduced in order to reduce regional disparities. If, on the other hand, our results suggest that income variability accounts for most of the disparities, regional policy could be focused on the negative effects of economic cycles. In this case, a regional convergence policy might be made to take second place. Our methodological approach involves calculating indices commonly used in the dynamic income distribution literature, such as those of Theil, Atkinson and Shorrocks. These indices are calculated at different levels, both temporal and geographical, in order to discover different regional behaviour patterns throughout the study period.

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File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa02/cd-rom/papers/212.pdf
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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p212.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p212

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  1. 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.
  2. Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
  3. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  4. Gottschald, Peter T, 1982. "Earnings Mobility: Permanent Change or Transitory Fluctuations," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 450-56, August.
  5. Jenkins, Stephen P, 1996. "Recent Trends in the UK Income Distribution: What Happened and Why?," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 29-46, Spring.
  6. Rolf Aaberge & Anders Björklund & Markus Jäntti & Mårten Palme & Peder J. Pedersen & Nina Smith & Tom Wennemo, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Discussion Papers 168, Research Department of Statistics Norway.
  7. Richard V. Burkhauser & John G. Poupore, 1997. "A Cross-National Comparison Of Permanent Inequality In The United States And Germany," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 10-17, February.
  8. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
  9. Lee A. Lillard & Robert J. Willis, 1976. "Dynamic Aspects of Earnings Mobility," NBER Working Papers 0150, National Bureau of Economic Research, Inc.
  10. Hart, Peter E, 1983. "The Size Mobility of Earnings," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 45(2), pages 181-93, May.
  11. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-24, September.
  12. Conlisk, John, 1985. "Comparative statics for markov chains," Journal of Economic Dynamics and Control, Elsevier, vol. 9(2), pages 139-151, October.
  13. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
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