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Income inequality, decentralisation, and regional development in Western Europe

Record type: Article

This paper deals with the relationship between decentralisation, regional economic development, and income inequality within regions. Using multiplicative interaction models and regionally aggregated microeconomic data for more than 100,000 individuals in the European Union (EU), it addresses two main questions. First, whether fiscal and political decentralisation in Western Europe has an effect on within regional interpersonal inequality. Second, whether this potential relationship is mediated by the level of economic development of the region. The results of the analysis show that greater fiscal decentralisation is associated with lower interpersonal income inequality, but as regional income rises, further decentralisation is connected to a lower decrease in inequality. This finding is robust to the measurement and definition of income inequality, as well as to the weighting of the spatial units by their population size.

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Citation

Tselios, Vassilis, Rodríguez-Pose, Andrés, Pike, Andy, Tomaney, John and Torrisi, Gianpero (2012) Income inequality, decentralisation, and regional development in Western Europe Environment and Planning A, 44, (6), pp. 1278-1301. (doi:10.1068/a44334).

More information

Published date: July 2012
Organisations: Economy, Society and Space

Identifiers

Local EPrints ID: 340931
URI: http://eprints.soton.ac.uk/id/eprint/340931
ISSN: 0308-518X
PURE UUID: cd4e7090-5ece-400b-b569-0e2793c710e2

Catalogue record

Date deposited: 06 Jul 2012 14:13
Last modified: 18 Jul 2017 05:40

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Contributors

Author: Vassilis Tselios
Author: Andrés Rodríguez-Pose
Author: Andy Pike
Author: John Tomaney
Author: Gianpero Torrisi

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