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The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries

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  • Luis Ayala

    (Universidad Rey Juan Carlos)

  • Javier Martin-Roman

    (UNED)

  • Juan Vicente

    (Universidad de Valladolid)

Abstract

This paper provides recent evidence on the contribution of the spatial dimension to inequality and more specifically accounts for the impact of the changes in the territorial distribution of the population on the recent dynamics of income inequality. We use LIS harmonized microdata for a selected sample of OECD countries. We provide new evidence over a more varied group of countries and a more recent period than in previous studies. We perform different types of decompositions to isolate the contribution of the changes in the territorial distribution of the population. The results show a generalized increase in income inequality, with an interesting “reducing effect†on this trend due to inter-territorial population movements.

Suggested Citation

  • Luis Ayala & Javier Martin-Roman & Juan Vicente, 2020. "The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries," Working Papers 513, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2020-513
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    2. Schröder, Carsten & König, Johannes & Fedorets, Alexandra & Goebel, Jan & Grabka, Markus M. & Lüthen, Holger & Metzing, Maria & Schikora, Felicitas & Liebig, Stefan, 2020. "The economic research potentials of the German Socio-Economic Panel study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 21(3), pages 335-371.
    3. Iñaki Permanyer & Nicolai Suppa, 2022. "Racing ahead or lagging behind? Territorial cohesion in human development around the globe," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2086-2101, December.
    4. Roberta Capello & Silvia Cerisola, 2020. "Concentrated versus diffused growth assets: agglomeration economies and regional cohesion," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1440-1453, December.

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    More about this item

    Keywords

    income inequality; regional inequality; decomposition methods; counterfactual analysis.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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