IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v238y2024ics0165176524001666.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

Club convergence in the eurozone: A look at inequality dynamics

Author

Listed:
  • Vale, Sofia

Abstract

This paper examines the convergence of eurozone countries’ inequality indicators between 1995 and 2020. The Phillips and Sul (2007, 2009) methodology is used to determine the existence of convergence clubs. Our findings show that eurozone countries follow a similar trajectory in terms of the income of the richest 1% of the population and are divided into two clusters based on other inequality indicators.

Suggested Citation

  • Vale, Sofia, 2024. "Club convergence in the eurozone: A look at inequality dynamics," Economics Letters, Elsevier, vol. 238(C).
    • Handle: RePEc:eee:ecolet:v:238:y:2024:i:c:s0165176524001666
    DOI: 10.1016/j.econlet.2024.111683
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176524001666
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2024.111683?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter C. B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Econometrica, Econometric Society, vol. 75(6), pages 1771-1855, November.
    2. Dustin Chambers & Shatakshee Dhongde, 2017. "Are countries becoming equally unequal?," Empirical Economics, Springer, vol. 53(4), pages 1323-1348, December.
    3. Delphin Kamanda Espoir, 2022. "Convergence or divergence patterns in income distribution across countries: A new evidence from a club clustering algorithm," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2025667-202, December.
    4. Campos, Nauro F. & Macchiarelli, Corrado, 2016. "Core and Periphery in the European Monetary Union: Bayoumi and Eichengreen 25 years later," Economics Letters, Elsevier, vol. 147(C), pages 127-130.
    5. Frederick Solt, 2020. "Measuring Income Inequality Across Countries and Over Time: The Standardized World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 101(3), pages 1183-1199, May.
    6. Cinzia Alcidi, 2019. "Economic Integration and Income Convergence in the EU," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 54(1), pages 5-11, January.
    7. Peter C. B. Phillips & Donggyu Sul, 2009. "Economic transition and growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1153-1185.
    8. Kvedaras, Virmantas & Cseres-Gergely, Zsombor, 2020. "Convergence of income distributions: Total and inequality-affecting changes in the EU," Economics Letters, Elsevier, vol. 188(C).
    9. Chambers, Dustin & Dhongde, Shatakshee, 2016. "Convergence in income distributions: Evidence from a panel of countries," Economic Modelling, Elsevier, vol. 59(C), pages 262-270.
    10. Savoia, Francesco, 2024. "Income inequality convergence among EU regions," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sakiru Adebola Solarin & Sinan Erdogan & Ugur Korkut Pata, 2023. "Convergence of Income Inequality in OECD Countries Since 1870: A Multi-Method Approach with Structural Changes," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 601-626, April.
    2. Kolawole Ogundari, 2023. "Club Convergence in Income Inequality in Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 319-337, June.
    3. Campos, Nauro F. & Macchiarelli, Corrado, 2021. "The dynamics of core and periphery in the European monetary union: A new approach," Journal of International Money and Finance, Elsevier, vol. 112(C).
    4. Mariarosaria Comunale & Anh Dinh Minh Nguyen & Soroosh Soofi-Siavash, 2019. "Convergence and growth decomposition: an analysis on Lithuania," Bank of Lithuania Discussion Paper Series 17, Bank of Lithuania.
    5. Claudia Suárez‐Arbesú & Nicholas Apergis & Francisco J. Delgado, 2023. "Club convergence and factors of income inequality in the European Union," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 3654-3666, October.
    6. Kacou Yves Thierry Kacou, 2022. "Interregional inequality in Africa, convergence, and multiple equilibria: Evidence from nighttime light data," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 918-940, May.
    7. Arčabić, Vladimir & Kim, Kyoung Tae & You, Yu & Lee, Junsoo, 2021. "Century-long dynamics and convergence of income inequality among the US states," Economic Modelling, Elsevier, vol. 101(C).
    8. Pinar, Mehmet, 2024. "Convergence in renewable energy innovation and factors influencing convergence club formation," Renewable Energy, Elsevier, vol. 220(C).
    9. Mihály Borsi & Norbert Metiu, 2015. "The evolution of economic convergence in the European Union," Empirical Economics, Springer, vol. 48(2), pages 657-681, March.
    10. Francesco Savoia & Ioannis Bournakis & Mona Said & Antonio Savoia, 2024. "Regional income inequality in Egypt: evolution and implications for Sustainable Development Goal 10," Oxford Development Studies, Taylor & Francis Journals, vol. 52(1), pages 17-33, January.
    11. Christopoulos, Konstantinos & Eleftheriou, Konstantinos, 2020. "Premature mortality in the US: A convergence study," Social Science & Medicine, Elsevier, vol. 258(C).
    12. Delgado Narro, Augusto Ricardo, 2020. "The Process of Convergence among the Japanese Prefectures: 1955 - 2012," MPRA Paper 100361, University Library of Munich, Germany.
    13. Tirtha Chaterjee & A. Ganesh Kumar, 2014. "Neighborhood and Agricultural Clusters across States of India," Working Papers id:6272, eSocialSciences.
    14. Carlos Mendez & Mitsuhiko Kataoka, 2021. "Disparities in regional productivity, capital accumulation, and efficiency across Indonesia: A club convergence approach," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 790-809, May.
    15. Shana M. Sundstrom & Craig R. Allen & David G. Angeler, 2020. "Scaling and discontinuities in the global economy," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 319-345, April.
    16. Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    17. Cutrini, Eleonora & Mendez, Carlos, 2023. "Convergence clubs and spatial structural change in the European Union," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 167-181.
    18. Rughoo, Aarti & Sarantis, Nicholas, 2014. "The global financial crisis and integration in European retail banking," Journal of Banking & Finance, Elsevier, vol. 40(C), pages 28-41.
    19. Saima Javed & Yu Rong & Babar Nawaz Abbasi, 2024. "Convergence analysis of artificial intelligence research capacity: Are the less developed catching up with the developed ones?," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(4), pages 2172-2192, May.
    20. Sefa Awaworyi Churchill & John Inekwe & Kris Ivanovski, 2023. "Has the COVID-19 pandemic converged across countries?," Empirical Economics, Springer, vol. 64(5), pages 2027-2052, May.

    More about this item

    Keywords

    Inequality; Convergence; Eurozone;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:238:y:2024:i:c:s0165176524001666. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.