Income Inequality, Decentralisation, and Regional Development in Western Europe

Vassilis Tselios, Andrés Rodríguez-Pose, Andy Pike, John Tomaney and Gianpiero Torrisi ()
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Andrés Rodríguez-Pose: Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, England
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

Environment and Planning A, 2012, vol. 44, issue 6, 1278-1301

Abstract: This paper deals with the relationship between decentralisation, regional economic development, and income inequality within regions. Using multiplicative interaction models and regionally aggregated microeconomic data for more than 100 000 individuals in the European Union (EU), it addresses two main questions. First, whether fiscal and political decentralisation in Western Europe has an effect on within-regional interpersonal inequality. Second, whether this potential relationship is mediated by the level of economic development of the region. The results of the analysis show that greater fiscal decentralisation is associated with lower interpersonal income inequality, but, as regional income rises, further decentralisation is connected to a lower decrease in inequality. This finding is robust to the measurement and definition of income inequality, as well as to the weighting of the spatial units by their population size.

Keywords: income inequality; income per capita; fiscal and political decentralisation; interaction; regions; Europe (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (27)

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Related works:
Working Paper: Income inequality, decentralisation and regional development in Western Europe (2011)
Working Paper: Income inequality, decentralisation and regional development in Western Europe (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:44:y:2012:i:6:p:1278-1301

DOI: 10.1068/a44334

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