101. Income inequality, decentralisation, and regional development in Western Europe
- Author
-
Vassilis Tselios, Andy Pike, Andrés Rodríguez-Pose, Gianpiero Torrisi, and John Tomaney
- Subjects
Inequality ,OECD COUNTRIES ,Economics ,media_common.quotation_subject ,Geography, Planning and Development ,MODELS ,0211 other engineering and technologies ,interaction ,02 engineering and technology ,FEDERALISM ,Environmental Science (miscellaneous) ,Decentralization ,Europe ,fiscal and political decentralization ,income inequality ,income per capita ,regions ,Economic inequality ,DISPARITIES ,Income distribution ,0502 economics and business ,Development economics ,media_common.cataloged_instance ,CROSS-COUNTRY ,050207 economics ,European union ,10. No inequality ,SPECIFICATION ,fiscal and political decentralisation ,media_common ,ECONOMIC-GROWTH ,Income inequality ,ERROR-COMPONENTS ,05 social sciences ,1. No poverty ,021107 urban & regional planning ,jel:D31 ,Per capita income ,FISCAL DECENTRALIZATION ,Income inequality metrics ,8. Economic growth ,jel:R58 ,jel:R13 ,jel:O15 ,jel:O18 ,Panel data ,PANEL-DATA - Abstract
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. Keywords: income inequality, income per capita, fiscal and political decentralisation, interaction, regions, Europe
- Published
- 2012
- Full Text
- View/download PDF