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Effect of privatisation on income inequality: a European analysis

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  • Noemí Peña-Miguel

    (University of the Basque Country (UPV/EHU))

  • Beatriz Cuadrado-Ballesteros

    (University of Salamanca)

Abstract

This study analyses the link between privatisation reforms and income inequality on a sample of 25 European countries between 2003 and 2013. Previous literature has related privatisations with the level of poverty, welfare, and well-being of population, but findings regarding income inequality are scarce, especially in the European context. The empirical results of this study suggest a positive link between both topics, for different indicators of privatisation and inequality. Concretely, findings suggest that income inequality is higher in countries that have resorted to privatisation reforms to a greater extent. Then, social consequences should be considered when evaluating regulatory reform, such as privatisation.

Suggested Citation

  • Noemí Peña-Miguel & Beatriz Cuadrado-Ballesteros, 2021. "Effect of privatisation on income inequality: a European analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 697-716, August.
  • Handle: RePEc:kap:empiri:v:48:y:2021:i:3:d:10.1007_s10663-020-09484-4
    DOI: 10.1007/s10663-020-09484-4
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