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Income and educational inequalities in the regions of the European Union: Geographical spillovers under welfare state restrictions

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  • Tselios, Vassilis

Abstract

This paper uses a balanced dataset extracted from the European Community Household Panel data survey for 94 regions over the period 1995–2000 to examine the relationship between income and educational inequalities in the regions of the European Union. It highlights the importance of geography and institutions in accounting for the economic performance of the European regions. The regression results suggest a positive relationship between income and educational inequalities, which have evolved differently across welfare regimes. Using different designs of spatial weights matrices which concern not only distance, but also the welfare regime, this paper shows that both spatial autocorrelation and spatial heterogeneity matter for inequalities.

Suggested Citation

Handle: RePEc:eee:paresc:v:87:y:2008:i:3:p:403-431
DOI: 10.1111/j.1435-5957.2008.00191.x
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JEL classification:

  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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