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Is income inequality converging at the regional level? Evidence from LIS data

Author

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  • Philipp Erfurth
Abstract
Interest in regional convergence in mean incomes has been rekindled by findings that suggest a shift from convergence to divergence. While the majority of existing research has explored convergence in mean incomes, this research focuses specifically on the convergence/divergence of interpersonal income distributions across regions, referred to throughout the study as comparative inter-regional inter-personal income distributions (CIRIPID). The findings suggest that CIRIPID, as measured by the Gini coefficient, converge across countries, but that heterogenous trends are visible within countries. The results highlight that in some countries regions are becoming equally more unequal, while others see regional Gini coefficients trend towards a lower level of inequality. The study also explores the impact of systems of government on CIRIPID. In addition, the study draws on the convergence club methodology to identify heterogeneous CIRIPID convergence paths within countries.

Suggested Citation

  • Philipp Erfurth, 2024. "Is income inequality converging at the regional level? Evidence from LIS data," Journal of Economic Geography, Oxford University Press, vol. 24(3), pages 375-392.
    • Handle: RePEc:oup:jecgeo:v:24:y:2024:i:3:p:375-392.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbad029
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    Cited by:

    1. Harald Bathelt & Maximilian Buchholz & Michael Storper, 2024. "The nature, causes, and consequences of inter-regional inequality," Journal of Economic Geography, Oxford University Press, vol. 24(3), pages 353-374.

    More about this item

    Keywords

    Inequality; Convergence; Convergence clubs; Regional growth; Comparative inter-regional inter-personal income distributions;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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