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Regional Income Differences in Finland, 1966-96

Author

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  • Sullström, Risto
  • Loikkanen, Heikki A.
  • Rantala, Anssi

Abstract

Household Survey data is used to study income differences between and within regions in Finland during 1966-1996. We have five major (NUTS2) regions and apply four income concepts: factor income, gross income, disposable income and final income, and consider how per capita incomes have evolved regionally relative to the respective national averages. There has been regional convergence especially in disposable and final income per capita. Regional Gini-coefficients based on respective income concepts, both per capita and per Atkinson?s equivalent unit, indicate that there are no big differences in income inequality across regions. Although inequality has increased over time when factor income is considered, it has remained much the same in case of disposable income and final income, until an increase occurs in mid-1990s, after the deep depression years in Finland. We also study how changes in earned and unearned income, direct taxes and transfers, affect income inequality.

Suggested Citation

  • Sullström, Risto & Loikkanen, Heikki A. & Rantala, Anssi, 1998. "Regional Income Differences in Finland, 1966-96," Discussion Papers 181, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:181
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    6. Sullström, Risto & Suoniemi, Ilpo, 1995. "The Structure of Household Consumption in Finland, 1966-1990," Research Reports 27, VATT Institute for Economic Research.
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    Cited by:

    1. Kangasharju, Aki & Pekkala, Sari, 2001. "Regional Economic Repercussions of an Economic Crisis: A Sectoral Analysis," Discussion Papers 248, VATT Institute for Economic Research.
    2. Gertrudes das Dores Lopes Saúde Guerreiro, 2012. "Regional Income Distribution in Portugal," CEFAGE-UE Working Papers 2012_06, University of Evora, CEFAGE-UE (Portugal).
    3. Mäki-Arvela, Petteri, 2002. "Testing the Neoclassical Model of Regional Economic Growth: A Panel Data Approach across the Finnish Provinces, 1973-1996," The Review of Regional Studies, Southern Regional Science Association, vol. 32(2), pages 223-253, Summer/Fa.
    4. Camilla Härtull & Jan Saarela, 2019. "Ethno-Linguistic Affiliation and Income Poverty in Native Households with Children: Finland 1987–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 403-424, July.

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