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

Juan Duro

Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona

Abstract: 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.

Keywords: regional inequality; inequality decomposition (search for similar items in EconPapers)
JEL-codes: D39 D63 R12 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2004-10
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:uab:wprdea:wpdea0411

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