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Regional Income Inequalities in Europe: An Updated Measurement and Some Decomposition Results

  • J.A. Duro

    ()

    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

In this paper well-known summary inequality indexes are used to explore interregional income inequalities in Europe. In particular, we mainly employ Theils’population-weighted index because of its appealing properties. Two decomposition analysis are applied. First, regional inequalities are decomposed by regional subgroups (countries). Second, intertemporal inequality changes are separated into income and population changes. The main results can be summarized as follows. First, data confirm a reduction in crossregional inequality during 1982-97. Second, this reduction is basically due to real convergence among countries. Third, currently the greater part of European interregional disparities is within-country by nature, which introduce an important challenge for the European policy. Fourth, inequality changes are due mainly to income variations, population changes playing a minor role.

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File URL: http://www.ecap.uab.es/RePEc/doc/wpdea0411.pdf
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Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea0411.

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Length: 46 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:uab:wprdea:wpdea0411
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  1. Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Goerlich Gisbert, Francisco J., 2001. "On factor decomposition of cross-country income inequality: some extensions and qualifications," Economics Letters, Elsevier, vol. 70(3), pages 303-309, March.
  3. Gouyette, Claudine & Neven, Damien J, 1994. "Regional Convergence in the European Community," CEPR Discussion Papers 914, C.E.P.R. Discussion Papers.
  4. Juan Antonio Duro Moreno, 2001. "Cross-country inequalities in aggregate welfare: some evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 403-406.
  5. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 257-281, March.
  6. Sala-i-Martin, Xavier, 1994. "Cross-sectional regressions and the empirics of economic growth," European Economic Review, Elsevier, vol. 38(3-4), pages 739-747, April.
  7. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-40, June.
  8. Raffaele Paci, 1997. "More similar and less equal: Economic growth in the European regions," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(4), pages 609-634, December.
  9. Ram, Rati, 1995. ""Nominal" and "Real" Interstate Income Inequality in the United States: Some Additional Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(4), pages 399-404, December.
  10. Champernowne, D G, 1974. "A Comparison of Measures of Inequality of Income Distribution," Economic Journal, Royal Economic Society, vol. 84(336), pages 787-816, December.
  11. Lucia Quadrado & Henk Folmer & Sudha Loman, 2001. "Regional inequality in the provision of health care in Spain," Environment and Planning A, Pion Ltd, London, vol. 33(5), pages 783-798, May.
  12. Ram, Rati, 1992. "Interstate Income Inequality in the United States: Measurement, Modelling and Some Characteristics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(1), pages 39-48, March.
  13. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
  14. Linda McCarthy, 2000. "European economic integration and urban inequalities in Western Europe," Environment and Planning A, Pion Ltd, London, vol. 32(3), pages 391-410, March.
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