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Dynamics of inequality and opportunities within European countries

Ana Suárez Álvarez () and Ana López-Menéndez ()

Bulletin of Economic Research, 2021, vol. 73, issue 4, 555-579

Abstract: In this paper, we provide an analysis of inequalities and opportunities within European countries. For this purpose, we use microdata from 26 European countries collected using the European Union Survey on Income and Living Conditions. This instrument includes harmonised variables to guarantee comparability across countries. Our analysis aims to detect whether European countries converge with respect to income inequality and inequality of opportunity and whether there is a spatial divide between European countries regarding inequalities. Our results show that inequality of opportunity in post‐communist countries is much larger than in the Western European countries. Furthermore, we present evidence of β‐convergence in terms of both income inequality and inequality of opportunity. Accordingly, inequality grows faster in less unequal countries, and therefore countries tend to converge with respect to inequality level.

Date: 2021
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