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The Spatial Structure Of Income Inequality In The Enlarged Eu

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  • Onno Hoffmeister

Abstract

This study examines how personal disposable income is distributed across regions, countries and larger geographical areas in the EU25 and how this distribution changed during the second half of the 1990s. Moreover, it assesses the “statistical” effect resulting from the enlargement of the European Union, and therefore the community of people for which inequality is measured. A three‐level spatial decomposition of the overall personal inequality in the EU reveals that a fifth of its amount is attributed to the east–west income gap and that intra‐regional inequality accounts for three quarters. The study detects a convergence of both average national income levels and within‐country personal income inequality. Inequality is rising primarily in the Scandinavian social‐democratic welfare states and decreasing in the Mediterranean countries of the EU15. In Eastern Central Europe, the rapid growth of inequality which had been observable during the first years of transition has come to an end.

Suggested Citation

  • Onno Hoffmeister, 2009. "The Spatial Structure Of Income Inequality In The Enlarged Eu," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 101-127, March.
    • Handle: RePEc:bla:revinw:v:55:y:2009:i:1:p:101-127
    DOI: 10.1111/j.1475-4991.2008.00308.x
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    Cited by:

    1. Claudius Gräbner & Philipp Heimberger & Jakob Kapeller & Bernhard Schütz, 2017. "Is Europe disintegrating? Macroeconomic divergence, structural polarization, trade and fragility," Economics working papers 2017-15, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Tatiana Yu. Ivakhnenko, 2023. "Modeling of Income Inequality of the Population with Spatial Dependence in Russia [Моделирование Неравенства Доходов Населения С Учетом Пространственной Зависимости В Рф]," Russian Economic Development, Gaidar Institute for Economic Policy, issue 7, pages 21-28, July.
    3. Christoph Hauser & Gottfried Tappeiner & Janette Walde, 2015. "The Roots of Regional Trust," Working Papers 2015-13, Faculty of Economics and Statistics, Universität Innsbruck.
    4. Luis Ayala & Javier Martín‐Román & Juan Vicente, 2020. "The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 447-477, June.
    5. Stefan Kranzinger, 2020. "The decomposition of income inequality in the EU-28," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(3), pages 643-668, August.
    6. Cerciello, Massimiliano & Agovino, Massimiliano & Garofalo, Antonio, 2019. "The caring hand that cripples? The effects of the European regional policy on local labour market participation in Southern Italy," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    7. Mathias Moser & Matthias Schnetzer, 2014. "The Geography of Average Income and Inequality: Spatial Evidence from Austria," Department of Economics Working Papers wuwp191, Vienna University of Economics and Business, Department of Economics.
    8. Kuo-Hsing Kuo & Cheng-Te Lee, 2017. "Economic Integration, Growth and Income Distribution," Australian Economic Papers, Wiley Blackwell, vol. 56(1), pages 59-71, March.
    9. Mehmet Pinar, 2019. "Multidimensional Well-Being and Inequality Across the European Regions with Alternative Interactions Between the Well-Being Dimensions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 31-72, July.
    10. Kuo-Hsing Kuo & Cheng-Te Lee, 2018. "Technology Advantage, Heterogeneous Talent And Trade," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(05), pages 1307-1317, December.
    11. Polin, Veronica & Raitano, Michele, 2009. "Dimensione e dinamica della povertà nell’Unione Europea dopo l’allargamento: un’analisi comparata delle determinanti dei movimenti delle famiglie [Poverty and inequality dynamics in the enlarged Eu," MPRA Paper 25567, University Library of Munich, Germany.

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