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Regional growth and inequality in the long-run: Europe, 1900–2015

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  • Joan R Rosés
  • Nikolaus Wolf

Abstract

In this paper we discuss regional income growth and inequality based on a new set of long-run data. The data cover 173 European regions in 16 countries, from 1900 to 2015. These data allow us to compare regions over time, among each other, and to other parts of the world. After some brief notes on methodology, we describe the basic patterns in the data in terms of some key dimensions: variation in the density of population and economic activity, structural change with a declining role of agriculture, the rise and fall of industry, and the long rise of services. We show how ‘fundamentals’ of institutions and geography affected income levels over the twentieth century, and describe how regional growth after 1945 turned from convergence and adjustment to shocks to divergence. In the long run we observe a U-shaped pattern of regional convergence followed by divergence, not unlike recent observations on personal income and wealth distributions.

Suggested Citation

  • Joan R Rosés & Nikolaus Wolf, 2021. "Regional growth and inequality in the long-run: Europe, 1900–2015," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(1), pages 17-48.
    • Handle: RePEc:oup:oxford:v:37:y:2021:i:1:p:17-48.
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    File URL: http://hdl.handle.net/10.1093/oxrep/graa062
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    Cited by:

    1. 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.
    2. Paul Berbée & Sebastian Till Braun & Richard Franke, 2025. "Reversing fortunes of German regions, 1926–2019: Boon and bane of early industrialization?," Journal of Economic Growth, Springer, vol. 30(2), pages 307-337, June.
    3. David Chilosi & Carlo Ciccarelli, 2022. "Evolving gaps: Occupational structure in southern and northern Italy, 1400–1861," Economic History Review, Economic History Society, vol. 75(4), pages 1349-1378, November.
    4. Mark Fransham & Max Herbertson & Mihaela Pop & Margarida Bandeira Morais & Neil Lee, 2023. "Level best? The levelling up agenda and UK regional inequality," Regional Studies, Taylor & Francis Journals, vol. 57(11), pages 2339-2352, November.
    5. Andrés Rodríguez-Pose & Javier Terrero-Dávila & Neil Lee, 2023. "Left-behind versus unequal places: interpersonal inequality, economic decline and the rise of populism in the USA and Europe," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 951-977.
    6. Harald Bathelt & Maximilian Buchholz & Michael Storper, 2024. "The nature, causes, and consequences of inter-regional inequality," Journal of Economic Geography, Oxford University Press, vol. 24(3), pages 353-374.
    7. Miriam Fritzsche, 2024. "De-industrialization, local joblessness and the male-female employment gap," Berlin School of Economics Discussion Papers 0040, Berlin School of Economics.
    8. Danilo Carullo & Paolo Di Caro & Ugo Fratesi, 2025. "The role of employment, labour productivity and trade linkages in the evolution of European regional disparities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-30, March.
    9. Bauluz, Luis & Bukowski, Pawel & Fransham, Mark & Lee, Annie & López Forero, Margarita & Novokmet, Filip & Breau, Sébastien & Lee, Neil & Malgouyres, Clement & Schularick, Moritz & Verdugo, Gregory, 2023. "Spatial wage inequality in North America and Western Europe: changes between and within local labour markets 1975-2019," LSE Research Online Documents on Economics 119922, London School of Economics and Political Science, LSE Library.
    10. Maciej Bukowski & Michał Kowalski & Marcin Wroński, 2025. "The Economic Growth and Regional Convergence in Interwar Poland: Detailed Historical National Accounts," Working Papers 2025-03, Faculty of Economic Sciences, University of Warsaw.
    11. Miriam Fritzsche & Nikolaus Wolf, 2022. "Fickle Fossils. Economic Growth, Coal and the European Oil Invasion 1900-2015," Working Papers 029, The Productivity Institute.
    12. Alicia Gómez-Tello & María-José Murgui-García & María-Teresa Sanchis-Llopis, 2025. "Labour productivity disparities in European regions: the impact of agglomeration effects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(3), pages 1-32, September.
    13. Juan Duran & Iulia Siedschlag, 2025. "Multinational Enterprises and Between‐Firm Wage Inequality Across European Regions," The World Economy, Wiley Blackwell, vol. 48(11), pages 2447-2466, November.
    14. Theodoros Chatzivasileiadis & Ignasi Cortes Arbues & Jochen Hinkel & Daniel Lincke & Richard S. J. Tol, 2023. "Actualised and future changes in regional economic growth through sea level rise," Papers 2401.00535, arXiv.org.
    15. Croce, Giuseppe & Piselli, Paolo, 2024. "Are the best jobs created in largest cities? Evidence from Italy 1993-2016," MPRA Paper 121228, University Library of Munich, Germany.
    16. Nataliia Letunovska & Rafis Abazov & Yang Chen, 2022. "Framing a Regional Spatial Development Perspective: The Relation between Health and Regional Performance," Virtual Economics, The London Academy of Science and Business, vol. 5(4), pages 87-99, December.
    17. Bathelt, Harald & Buchholz, Maximilian & Storper, Michael, 2024. "The nature, causes, and consequences of inter-regional inequality," LSE Research Online Documents on Economics 123014, London School of Economics and Political Science, LSE Library.
    18. Adamiak, Czeslaw & Rodriguez-Pose, Andres & Churski, Pawel & Dubownik, Anna & Pietrzykowski, Maciej & Szyda, Barbara & Rosik, Piotr, 2024. "Places that matter and places that don't: territorial revenge and counter-revenge in Poland," LSE Research Online Documents on Economics 126536, London School of Economics and Political Science, LSE Library.
    19. Ensar Yılmaz & Zeynep Kaplan, 2022. "Regional polarization in Turkey," Growth and Change, Wiley Blackwell, vol. 53(1), pages 410-431, March.
    20. Jiashun Huang & Jim Huangnan Shen & Zhiyan Sun, 2023. "Understanding China's Economic Growth from a Regional Policy Perspective," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(3), pages 1-26, May.
    21. Daniel Albalate & Germà Bel & Ferran A. Mazaira‐Font, 2022. "Geography and regional economic growth: The high cost of deviating from nature," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 360-388, March.

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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