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The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries

Author

Listed:
  • Ayala, Luis
  • Martín†Román, Javier
  • Vicente, Juan

Abstract

This paper provides recent evidence on the contribution of the spatial dimension to inequality and more specifically accounts for the impact of the changes in the territorial distribution of the population on the recent dynamics of income inequality. We use LIS harmonized microdata for a selected sample of OECD countries. We provide new evidence over a more varied group of countries and a more recent period than in previous studies. We perform different types of decompositions to isolate the contribution of the changes in the territorial distribution of the population. The results show a generalized increase in income inequality, with an interesting “reducing effect†on this trend due to inter–territorial population movements.

Suggested Citation

Handle: RePEc:eee:paresc:v:99:y:2020:i:3:p:447-477
DOI: 10.1111/pirs.12503
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JEL classification:

  • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
  • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
  • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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