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European Monetary Union and Inequality: A Synthetic Control Approach

Author

Listed:
  • Florentin Kerschbaumer
  • Andreas Maschke

    (University of Leeds)

Abstract

The promise of greater material prosperity and economic convergence has underpinned the process of European economic integration. Its consequences for income inequalities within countries, however, have so far been little discussed. This paper seeks to contribute to the literature by investigating the effects of European economic integration on intra-country income inequality using the synthetic control method. We find that EMU, out of our sample of eight euro countries, has significant effects on inequality in Germany and Spain. From the several theories outlined in the literature, our results lend most support to the growth regime mechanism.

Suggested Citation

  • Florentin Kerschbaumer & Andreas Maschke, 2020. "European Monetary Union and Inequality: A Synthetic Control Approach," Working Papers PKWP2024, Post Keynesian Economics Society (PKES).
    • Handle: RePEc:pke:wpaper:pkwp2024
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    More about this item

    Keywords

    Income Inequality; European Monetary Union; Synthetic Control Method;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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