Decomposing European NUTS2 regional inequality from 1980 to 2009: national and European policy implications

Show simple item record Doran, Justin Jordan, Declan 2012-11-14T11:25:17Z 2012-11-14T11:25:17Z 2013
dc.identifier.citation Justin Doran, Declan Jordan (2013) 'Decomposing European NUTS2 Regional Inequality from 1980 to 2009: National and European Policy Implications'. Journal of Economic Studies, 40 (1). en
dc.identifier.volume 40 en
dc.identifier.issued 1 en
dc.identifier.issn 0144-3585
dc.description.abstract Purpose - This paper analyses income inequality for a sample of fourteen European countries and their composite regions using data from the Cambridge Econometrics regional dataset from 1980 to 2009. The purpose of the paper is to provide insight into the dynamics of regional and national cohesion among the EU-14 countries studied. Design/methodology/approach - Initially, inequality is decomposed using the Theil coefficient into between and within country inequality to assess the extent to which convergence has occurred. To investigate the underlying causes of the changes in inequality, the Theil coefficient is further decomposed to assess the contribution of productivity and employment-population ratio differentials to inequality. Findings - The results indicate that while between-country inequality has declined, within-country inequality has increased by approximately 50 percent. Subsequent decomposition indicates that while productivity levels among regions have converged, the employment-population ratios have diverged substantially driving increasing levels of inequality. This suggests that while EU cohesion policies have reduced productivity inequalities they have had little effect in stimulating convergence of employment-population ratios across regions.Research limitations/implications - The paper argues that national priorities, particularly in the context of the current European economic crisis, are likely to hinder European Union level policies to reduce income inequality at a regional level. This may result in further increases in regional inequality among European regions. Originality/value - This paper's main contribution is to highlight how national convergence can lead to regional divergence being overlooked. The value of the paper is that it provides policy insights, based on empirical evidence, for European cohesion policy. en
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Emerald Group Publishing Limited en
dc.rights ©Emerald Group Publishing Limited en
dc.subject Convergence en
dc.subject Theil coefficient en
dc.subject Inequality en
dc.subject European Union en
dc.title Decomposing European NUTS2 regional inequality from 1980 to 2009: national and European policy implications en
dc.type Article (peer-reviewed) en
dc.internal.authorurl en
dc.internal.authorcontactother Justin Doran, Economics, University College Cork, Cork, Ireland. +353-21-490-3000 Email: en
dc.internal.availability Full text available en 2012-11-07T13:03:13Z
dc.description.version Accepted Version en
dc.internal.rssid 119473491
dc.description.status Peer reviewed en
dc.identifier.journaltitle Journal of Economic Studies en
dc.internal.copyrightchecked No I have checked sherpa and it is a green journal. I have uploaded the post-print (ie final draft post-refereeing) copy of the article. CORA- checked Romeo and publisher's website. Accepted version permitted en
dc.internal.licenseacceptance Yes en
dc.internal.IRISemailaddress en

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