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Regional income inequalities and labour mobility in Hungary

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  • Svraka, András

    (Tax Policy and Research Unit, Ministry of Finance)

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.

Suggested Citation

  • Svraka, András, 2021. "Regional income inequalities and labour mobility in Hungary," Taxation Working Papers 9, Ministry of Finance, Department of Tax Policy and International Taxation.
    • Handle: RePEc:auo:moftwp:9
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    References listed on IDEAS

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    1. Morvay, Endre, 2015. "Külföldi munkavállalás a közép-kelet-európai országokban az európai munkaerő-felmérések alapján [Working abroad in Central Eastern European countries based on the European Labour Force Survey]," Taxation Working Papers 2, Ministry of Finance, Department of Tax Policy and International Taxation.
    2. David Castells-Quintana & Raul Ramos & Vicente Royuela, 2015. "Income inequality in European Regions: Recent trends and determinants," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(2), pages 123-146, October.
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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