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Inequality in EMU: is there a core periphery dualism?

Author

Listed:
  • Tatiana Cesaroni
  • Enrico D'Elia
  • Roberta De Santis

Abstract

Income inequality has had a minor role in the European integration process’ institutional framework. This is particularly unfitting given that reducing disparities has been one of the most explicit and firm goals of the EU, which has consequently devoted an increasing share of its budget to regional policy. This issue has potentially relevant policy implications (as often underlined by the OECD reports) because if the European integration has a role in increasing inequalities within member countries it is harmful for social cohesion. This paper intends to assess inequality determinants in EMU countries and whether the European integration process has been itself among them. It performs an empirical investigation on a panel of 12 EMU member States in the period 1980 and 2015. The contribution of this paper to the existing literature in twofold: first, it focuses on the effects of European integration on inequality in EMU countries over the last 25 years, on which the evidence is still scarce. Second, it tries to disentangle the European integration impact on inequality in core and periphery EMU members countries in order to investigate the so called “core periphery dualism” determinants.

Suggested Citation

  • Tatiana Cesaroni & Enrico D'Elia & Roberta De Santis, 2018. "Inequality in EMU: is there a core periphery dualism?," Working Papers 6, Department of the Treasury, Ministry of the Economy and of Finance.
  • Handle: RePEc:itt:wpaper:wp2018-6
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    References listed on IDEAS

    as
    1. repec:cii:cepiie:2018-q4-156-19 is not listed on IDEAS
    2. Beblo, Miriam & Knaus, Thomas, 2001. "Measuring Income Inequality in Euroland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 301-320, September.
    3. Avram, Silvia & Figari, Francesco & Leventi, Chrysa & Levy, Horacio & Navicke, Jekaterina & Matsaganis, Manos & Militaru, Eva & Paulus, Alari & Rastrigina, Olga & Sutherland, Holly, 2013. "The distributional effects of fiscal consolidation in nine EU countries," EUROMOD Working Papers EM2/13, EUROMOD at the Institute for Social and Economic Research.
    4. Enrico D'Elia & Roberta De Santis, 2018. "Growth divergence and income inequality in OECD countries:the role of trade and financial openness," Working Papers 5, Department of the Treasury, Ministry of the Economy and of Finance.
    5. Campos, Nauro F. & Macchiarelli, Corrado, 2016. "Core and Periphery in the European Monetary Union: Bayoumi and Eichengreen 25 years later," Economics Letters, Elsevier, vol. 147(C), pages 127-130.
    6. Nauro F. Campos & Corrado Macchiarelli, 2018. "Symmetry and Convergence in Monetary Unions," LEQS – LSE 'Europe in Question' Discussion Paper Series 131, European Institute, LSE.
    7. Roberta De Santis & Tatiana Cesaroni, 2016. "Current Account ‘Core–Periphery Dualism’ in the EMU," The World Economy, Wiley Blackwell, vol. 39(10), pages 1514-1538, October.
    8. repec:eee:inteco:v:156:y:2018:i:c:p:268-283 is not listed on IDEAS
    9. repec:bla:revinw:v:47:y:2001:i:3:p:301-333 is not listed on IDEAS
    10. Tatiana Cesaroni & Roberta De Santis, 2018. "Dynamics of net foreign asset components in the EMU," International Economics, CEPII research center, issue 156, pages 268-283.
    11. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 323-344, September.
    12. Wu, Jyun-Yi & Hsu, Chih-Chiang, 2012. "Foreign direct investment and income inequality: Does the relationship vary with absorptive capacity?," Economic Modelling, Elsevier, vol. 29(6), pages 2183-2189.
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    More about this item

    Keywords

    Income inequality; core-periphery dualism; financial integration; trade openness; panel data analysis;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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