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

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Author Info
Ezcurra, Roberto
Gil, Carlos ()
Pascual, Padro ()
Rapun, Manuel ()

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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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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. Bourguignon, F. & Morrisson, C. & Atkinson, A.B., 1991. "Empirical Studies of Earnings Mobility," DELTA Working Papers 91-14, DELTA (Ecole normale supérieure).
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  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. [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. 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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  7. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September. [Downloadable!] (restricted)
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  8. Conlisk, John, 1985. "Comparative statics for markov chains," Journal of Economic Dynamics and Control, Elsevier, vol. 9(2), pages 139-151, October. [Downloadable!] (restricted)
  9. 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.
  10. Fields, Gary S. & Ok, Efe A., 1996. "The Measurement of Income Mobility: An Introduction to the Literature," Working Papers 96-05, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  11. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December. [Downloadable!] (restricted)
  12. 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.
  13. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-24, September. [Downloadable!] (restricted)
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