European Integration and Inequality among Countries: a Lifecycle income Analysis
In this working paper we analyze the effects of the expansions of the European Union on inequality using an approach based on individuals lifecycle incomes. Such an approach allows us to consider the effect of different national growth and survival rates on inequality. It differs from the usual analyses of inequality that focus on the evolution of current per capita income for the period. The results show that inequality in terms of permanent income was substantially less than in current per capita income at the time of all the expansions except those of the last ten years. The results point to the key role of policies that stimulate growth in the less developed countries. With an annual b-convergence of 2% in current income, inequality in permanent income would be one third lower.
|Date of creation:||Nov 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +34 94 487 52 52
Fax: +34 94 424 46 21
Web page: http://www.fbbva.es
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kaitila, Ville, 2003. "Convergence of Real GDP per Capita in the EU15 area: How do the Accession Countries Fit in ?," Discussion Papers 865, The Research Institute of the Finnish Economy.
- Gasiorek, Michael & Smith, Alasdair & Venables, Anthony J, 1992. "`1992': Trade and Welfare; A General Equilibrium Model," CEPR Discussion Papers 672, C.E.P.R. Discussion Papers.
- T. Paul Schultz, 1998. "Inequality in the Distribution of Personal Income in the World: How it is Changing and Why," Working Papers 784, Economic Growth Center, Yale University.
- Joaquin Maudos & Jose Pastor & Lorenzo Seranno, 1999. "Economic integration, efficiency and economic growth: the European Union experience," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 389-392.
- Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1995.
"Growth Effects of European Integration,"
Working Paper Series
439, Research Institute of Industrial Economics.
- Henrekson, Magnus & Torstensson, Rasha, 1996. "Growth Effects of European Integration," CEPR Discussion Papers 1465, C.E.P.R. Discussion Papers.
- Magnus Henrekson & Johan Torstensson & Rasha Torstensson,, . "Growth Effects of European Integration," Discussion Papers 96/1, University of Nottingham, CREDIT.
- Ranjpour Reza & Karimi Takanlou Zahra, 2008. "Evaluation of the Income Convergence Hypothesis in Ten New Members of the European Union. A Panel Unit Root Approach," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 55(2), pages 157-166, June.
- Francois, Joseph & McDonald, Brad & Nordström, Håkan, 1994. "The Uruguay Round: A Global General Equilibrium Assessment," CEPR Discussion Papers 1067, C.E.P.R. Discussion Papers.
- MacDonald, James M, 1994. "Does Import Competition Force Efficient Production?," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 721-27, November.
- Schultz, T.P., 1998.
"Inequality in the Distribution of Personal Income in the World: How It Is Changing and Why,"
784, Yale - Economic Growth Center.
- T. Paul Schultz, 1998. "Inequality in the distribution of personal income in the world: How it is changing and why," Journal of Population Economics, Springer, vol. 11(3), pages 307-344.
- Engelbert Stockhammer, 2009. "Effects of European integration on Austria's economy," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 19-40.
- Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005.
"The Quantity and Quality of Life and the Evolution of World Inequality,"
American Economic Review,
American Economic Association, vol. 95(1), pages 277-291, March.
- Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2003. "The Quantity and Quality of Life and the Evolution of World Inequality," NBER Working Papers 9765, National Bureau of Economic Research, Inc.
- Cem Ertur & Wilfried Koch, 2006. "Regional disparities in the European Union and the enlargement process: an exploratory spatial data analysis, 1995–2000," The Annals of Regional Science, Springer, vol. 40(4), pages 723-765, December.
- Harris, Richard, 1984.
"Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition,"
American Economic Review,
American Economic Association, vol. 74(5), pages 1016-32, December.
- Richard Harris, 1983. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," Working Papers 524, Queen's University, Department of Economics.
- José M. Pastor & Lorenzo Serrano, 2008. "Permanent Income, Convergence And Inequality Among Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(1), pages 105-115, 03.
- Dowrick, Steve & Dunlop, Yvonne & Quiggin, John, 2003. "Social indicators and comparisons of living standards," Journal of Development Economics, Elsevier, vol. 70(2), pages 501-529, April.
- Ville Kaitila, 2004. "Convergence of real GDP per capita in the EU15. How do the Accession Countries fit in?," Economics Working Papers 025, European Network of Economic Policy Research Institutes.
- Aadne Cappelen & Fulvio Castellacci & Jan Fagerberg & Bart Verspagen, 2003. "The Impact of EU Regional Support on Growth and Convergence in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 41, pages 621-644, 09.
- Daniel Leigh & Abdul Abiad & Ashoka Mody, 2007. "International Finance and Income Convergence; Europe is Different," IMF Working Papers 07/64, International Monetary Fund.
- Guldager, Peter, 1997. "Convergence of the EU Member States towards the EMU requirements, 1986 to 1993," European Journal of Political Economy, Elsevier, vol. 13(2), pages 247-259, May.
- Modigliani, Franco, 1986.
"Life Cycle, Individual Thrift, and the Wealth of Nations,"
American Economic Review,
American Economic Association, vol. 76(3), pages 297-313, June.
- Modigliani, Franco, 1985. "Life Cycle, Individual Thrift and the Wealth of Nations," Nobel Prize in Economics documents 1985-1, Nobel Prize Committee.
- M-super-a Jes�s Delgado-Rodríguez & Inmaculada �lvarez-Ayuso, 2008. "Economic Growth and Convergence of EU Member States: An Empirical Investigation," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 486-497, 08.
- Costas Megir & Danny Quah, 1996. "Regional Convergence Clusters Across Europe," CEP Discussion Papers dp0274, Centre for Economic Performance, LSE.
- Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
- Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
When requesting a correction, please mention this item's handle: RePEc:fbb:wpaper:201050. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fundacion BBVA / BBVA Foundation)
If references are entirely missing, you can add them using this form.