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Regional income inequalities and labour mobility in Hungary

András Svraka

Taxation Working Papers from Ministry of Finance, Department of Tax Policy and International Taxation

Abstract: We analyse regional wage inequalities in the 2010s using administrative data sources at highly disaggregated regional levels, including commuting zones. The decline in national wage inequalities during this period is reflected at regional levels and we find convergence between regions in income levels and in the decreasing weight of between region inequalities as well. There are still large differences, and high income employees are concentrated in prosperous regions. Interregional mobility was also a driving force behind changes in income inequalities even in a country with low overall mobility rates. High income employees are much more likely to move, typically from less central, less developed regions to more central, larger labour markets. We find some evidence for a transitory mobility premium, although we cannot establish the causality of this relationship.

JEL-codes: D31 J61 R12 (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-isf, nep-lab, nep-mig, nep-tra and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:auo:moftwp:9

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