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Inequalities in income and education and regional economic growth in western Europe

Inequalities in income and education and regional economic growth in western Europe
Inequalities in income and education and regional economic growth in western Europe
Does inequality matter for regional growth? This paper addresses this question, using regionally aggregated microeconomic data for more than 100,000 individuals over a period of 6 years. The aim is to examine the relationship between income and educational distribution and regional economic growth in western Europe. Our results indicate that, given existing levels of inequality, an increase in a region's income and educational inequality has a significant positive association with subsequent economic growth. Educational achievement is positively correlated with economic growth, but the impact of initial income levels is unclear. Finally, the results suggest that inequalities in educational attainment levels matter more for economic performance than average educational attainment. The above findings are not only robust to the definition of income distribution, but also across inequality measurements.
0570-1864
349-375
Rodríguez-Pose, Andrés
a65f9ffb-4b14-4b76-bae9-200e424a1063
Tselios, Vassilis
a1fc70a6-a193-4075-8e36-5b07b65ebd17
Rodríguez-Pose, Andrés
a65f9ffb-4b14-4b76-bae9-200e424a1063
Tselios, Vassilis
a1fc70a6-a193-4075-8e36-5b07b65ebd17

Rodríguez-Pose, Andrés and Tselios, Vassilis (2010) Inequalities in income and education and regional economic growth in western Europe. The Annals of Regional Science, 44 (2), 349-375. (doi:10.1007/s00168-008-0267-2).

Record type: Article

Abstract

Does inequality matter for regional growth? This paper addresses this question, using regionally aggregated microeconomic data for more than 100,000 individuals over a period of 6 years. The aim is to examine the relationship between income and educational distribution and regional economic growth in western Europe. Our results indicate that, given existing levels of inequality, an increase in a region's income and educational inequality has a significant positive association with subsequent economic growth. Educational achievement is positively correlated with economic growth, but the impact of initial income levels is unclear. Finally, the results suggest that inequalities in educational attainment levels matter more for economic performance than average educational attainment. The above findings are not only robust to the definition of income distribution, but also across inequality measurements.

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Published date: April 2010
Organisations: Economy, Society and Space

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Local EPrints ID: 340922
URI: http://eprints.soton.ac.uk/id/eprint/340922
ISSN: 0570-1864
PURE UUID: c3eb657e-e0ea-4886-b20c-1e40a087d5d1

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Date deposited: 06 Jul 2012 13:30
Last modified: 14 Mar 2024 11:31

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Contributors

Author: Andrés Rodríguez-Pose
Author: Vassilis Tselios

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