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Income and educational inequalities in the regions of the European Union: Geographical spillovers under welfare state restrictions

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  • Vassilis Tselios

Abstract

. This paper uses a balanced dataset extracted from the European Community Household Panel data survey for 94 regions over the period 1995–2000 to examine the relationship between income and educational inequalities in the regions of the European Union. It highlights the importance of geography and institutions in accounting for the economic performance of the European regions. The regression results suggest a positive relationship between income and educational inequalities, which have evolved differently across welfare regimes. Using different designs of spatial weights matrices which concern not only distance, but also the welfare regime, this paper shows that both spatial autocorrelation and spatial heterogeneity matter for inequalities. Resumen. Este artículo utiliza datos equilibrados extraídos de la encuesta del Panel de Hogares de la Unión Europea (PHOGUE) para 94 regiones durante el periodo 1995–2000 para examinar la relación entre la renta y las desigualdades educativas en las regiones de la Unión Europea. Resalta la importancia de la geografía y las instituciones para explicar el rendimiento económico de las regiones europeas. Los resultados de la regresión sugieren una relación positiva entre la renta y las desigualdades educativas, las cuales han evolucionado de manera distinta bajo regímenes diferentes de asistencia social. Mediante la utilización de diseños diferentes de matrices ponderadas espaciales relacionadas no solo con la distancia sino también con el régimen de asistencia social, este artículo muestra que tanto la autocorrelación espacial como la heterogeneidad espacial influyen en las desigualdades.

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  • Vassilis Tselios, 2008. "Income and educational inequalities in the regions of the European Union: Geographical spillovers under welfare state restrictions," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 403-430, August.
    • Handle: RePEc:bla:presci:v:87:y:2008:i:3:p:403-430
    DOI: 10.1111/j.1435-5957.2008.00191.x
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