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Income Inequality Within European Regions: Determinants And Effects On Growth

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  • Cristiano Perugini
  • Gaetano Martino

Abstract

Economic inequality across Europe has been largely investigated by analyzing the determinants and dynamics of the disparities between countries and regions. Similarly, many studies have focused on inequality within European countries. So far, less attention has been devoted to economic inequality within European regions, mainly due to data shortages. The aim of this paper is to shed some light on this level of analysis. After the introductory section, the first part of the paper presents the conceptual bases of the study, examining relevant theoretical and empirical arguments about (i) the determinants of economic inequality, (ii) the relationship between economic inequality and growth, and (iii) the desirability and specificity of regional analysis. The second part of the paper, using various econometric approaches, provides evidence of the centrality of labor market qualitative and quantitative aspects and of some country-level institutional settings for regional inequality levels. As regards the effects of inequality on growth, the results suggest a positive relationship. Copyright 2008 The Authors. Journal compilation 2008 International Association for Research in Income and Wealth Published.

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  • Cristiano Perugini & Gaetano Martino, 2008. "Income Inequality Within European Regions: Determinants And Effects On Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 373-406, September.
  • Handle: RePEc:bla:revinw:v:54:y:2008:i:3:p:373-406
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    Cited by:

    1. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2011. "Temporary job protection and productivity growth in EU economies," Quaderni del Dipartimento di Economia, Finanza e Statistica 87/2011, Università di Perugia, Dipartimento Economia.
    2. Leonardo Bonilla Mejía, 2009. "Determinantes de las diferencias regionales en la distribución del ingreso en Colombia, un ejercicio de microdescomposición," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, vol. 27(59), pages 100-156, June.
    3. L, Agnello. & R, M. Sousa., 2012. "How does Fiscal Consolidation Impact on Income Inequality?," Working papers 382, Banque de France.
    4. Leonardo Bonilla Mejía, 2011. "Diferencias regionales en la distribución del ingreso en Colombia," REVISTA SOCIEDAD Y ECONOMIA - CIDSE, UNIVERSIDAD DEL VALLE - CIDSE.
    5. Leonardo Bonilla Mejía, 2011. "Diferencias regionales en la distribución del ingreso en Colombia," REVISTA SOCIEDAD Y ECONOMIA - CIDSE, UNIVERSIDAD DEL VALLE - CIDSE.
    6. Moser, Mathias & Schnetzer, Matthias, 2014. "The Geography of Average Income and Inequality: Spatial Evidence from Austria," Department of Economics Working Paper Series 4349, WU Vienna University of Economics and Business.
    7. Davide Castellani & Fabio Pieri, 2011. "Foreign Investments and Productivity Evidence from European Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 83/2011, Università di Perugia, Dipartimento Economia.
    8. Mirella Damiani, 2010. "Labour regulation, corporate governance and varieties of capitalism," Quaderni del Dipartimento di Economia, Finanza e Statistica 76/2010, Università di Perugia, Dipartimento Economia.
    9. Silvia Micheli, 2010. "Learning Curve and Wind Power," Quaderni del Dipartimento di Economia, Finanza e Statistica 81/2010, Università di Perugia, Dipartimento Economia.
    10. repec:eee:ecmode:v:65:y:2017:i:c:p:119-128 is not listed on IDEAS
    11. Stefano Herzel, Stefano & Marco Nicolosi, Marco & Starica, Catalin, 2010. "The cost of sustainability on optimal portfolio choices," Sustainable Investment and Corporate Governance Working Papers 2010/15, Sustainable Investment Research Platform.
    12. Joao Pereira & Aurora Galego, 2013. "Intra-Regional Regional Wage Inequality In Portugal: A Quantile Based Decomposition Analisys," ERSA conference papers ersa13p158, European Regional Science Association.
    13. Luca Agnello & Ricardo M. Sousa, 2014. "How Does Fiscal Consolidation Impact on Income Inequality?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 702-726, December.
    14. Gustavo A. Marrero & Juan Gabriel Rodríguez, 2010. "Inequality of opportunity in Europe: Economic and policy facts," Working Papers 172, ECINEQ, Society for the Study of Economic Inequality.
    15. Roberto Ezcurra, 2009. "Does Income Polarization Affect Economic Growth? The Case of the European Regions," Regional Studies, Taylor & Francis Journals, pages 267-285.
    16. repec:spr:qualqt:v:51:y:2017:i:6:d:10.1007_s11135-016-0415-1 is not listed on IDEAS
    17. Arshad Ali Bhatti & Zakia Batool & Hasnain A. Naqvi, 2015. "Fiscal Policy and Its Role in Reducing Income Inequality- A CGE Analysis for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 843-864.
    18. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia.
    19. Stefano Herzel & Marco Nicolosi & Cătălin Stărică, 2012. "The cost of sustainability in optimal portfolio decisions," The European Journal of Finance, Taylor & Francis Journals, pages 333-349.
    20. Kamila Sławińska & Bartosz Witkowski, 2012. "Wykorzystanie uśrednionych modeli bayesowskich do badania czynników wpływających na poziom nierówności dochodowych w wybranej grupie krajów," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 27, pages 131-144.
    21. David Castells-Quintana & Raul Ramos & Vicente Royuela, 2015. "Income inequality in European Regions: Recent trends and determinants," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(2), pages 123-146, October.
    22. Stefano Herzel & Marco Nicolosi & Cătălin Stărică, 2012. "The cost of sustainability in optimal portfolio decisions," The European Journal of Finance, Taylor & Francis Journals, pages 333-349.
    23. Fabrizi, Enrico & Trivisano, Carlo, 2016. "Small area estimation of the Gini concentration coefficient," Computational Statistics & Data Analysis, Elsevier, pages 223-234.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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