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Mapping Regional Personal Income Distribution in Western Europe: Income per Capita and Inequality

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  • Rodríguez-Pose, Andrés
  • Tselios, Vassilis

Abstract

Past studies of regional economic disparities in the EU are entirely based on the information provided by macroeconomic variables. This paper considers the microeconomic perspectives of a region, paying attention not only to average but also to inequality levels of individual incomes within regions. It maps regional personal income distribution in western Europe, using data from the European Community Household Panel (ECHP) data survey covering more than 100,000 individuals, for 102 regions, and over the period 1995-2000. The Exploratory Spatial Data Analysis on income per capita and inequality revealed a rich set of findings. (1) There is a strong negative relationship between income per capita and inequality which is highly robust across inequality measurements. (2) 80 percent of the income inequality in Europe takes place among individuals living in the same region. (3) Regions with similar income conditions tend to cluster, not only within national borders but also across nations. (4) There is a North-South and an urban-rural divide where Northern regions and city-regions have the highest economic development as well as the lowest levels of inequality.

Suggested Citation

  • Rodríguez-Pose, Andrés & Tselios, Vassilis, 2008. "Mapping Regional Personal Income Distribution in Western Europe: Income per Capita and Inequality," Papers DYNREG33, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:dynreg33
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    References listed on IDEAS

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    Cited by:

    1. Jyotirmayee Kar, 2012. "Income Inequality in Some Major European Union Economies a Discriminant Analysis," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(4), pages 117-128.
    2. Neil Lee & Andrés Rodríguez-Pose, 2013. "Innovation and spatial inequality in Europe and USA," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 1-22, January.
    3. Andrés Rodríguez-Pose & Vassilis Tselios, 2009. "Education And Income Inequality In The Regions Of The European Union," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 411-437.
    4. Kaja Bonesmo Fredriksen, 2012. "Income Inequality in the European Union," OECD Economics Department Working Papers 952, OECD Publishing.
    5. Wenze Yue & Yuntang Zhang & Xinyue Ye & Yeqing Cheng & Mark R. Leipnik, 2014. "Dynamics of Multi-Scale Intra-Provincial Regional Inequality in Zhejiang, China," Sustainability, MDPI, Open Access Journal, vol. 6(9), pages 1-22, August.
    6. Emmanouil Tranos & Peter Nijkamp, 2014. "Digital infrastructure and physical proximity," Chapters,in: Regional Development and Proximity Relations, chapter 8, pages 267-290 Edward Elgar Publishing.

    More about this item

    Keywords

    income inequality; regions; Exploratory Spatial Data Analysis; Europe; urbanisation; EU North-South divide.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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