On the measurement of regional inequality: does spatial dimension of income inequality matter?

The paper concerns selected theoretical and empirical aspects of the decomposition of income inequality by spatially defined subgroups. Special consideration is given to the implications for measurement and comparison of regional inequality. The decomposition by the Theil coefficient is applied at global and European levels including estimates of historical development. Additionally, the empirical evidence on the decomposition of inequality in a number of countries is reviewed, regional inequality for 46 countries is estimated, and a simple method of cross-country classification according to relative importance of spatial dimension of inequality is provided.     

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.     

Understanding Indonesia’s gated communities and their relationship with inequality

Abstract

Income inequality continues to increase worldwide and is highly visible in cities. This rising income inequality, along with the growing upper-middle class, has accelerated the development of gated communities (GC) as a desired housing for the ‘successful’ groups and a manifestation of how the city reproduces inequality. We analyze GC development in Jakarta and Yogyakarta, Indonesia, and offer a typology for this housing option in that country where income inequality has been growing and is now a serious government concern. Although the early 2000s saw isolated GC in only a few cities, now they are developing vigorously. This article contributes twofold. First, it provides evidence on the emergence and features of GC. Second, it shows a relationship between income inequality, social differences and GC development for upper-middle class residents in Indonesia. We argue that there is a mutually reinforcing relationship between inequality and GC: increasing income inequality leads to higher number of GC and this material artefact entrenches ‘emplaced inequality’.     

Economic growth and regional income inequality in Brazil

This paper analyses the evolution of regional inequality in Brazil in the period 1939–1995. Based on a data set organized by the author, indicators of per capita income dispersion among states and regions are presented and their evolution over time is analyzed. The correlation between the regional initial level of per capita income and its growth is considered, testing for Beta convergence. The speed of convergence is calculated in two different forms, the neoclassical model and the coefficient of variation, the later allowing for the analysis of oscillations in inequality over time and its relationship to national economic growth rates. The Kuznetz hypothesis, relating regional income inequality and level of development, is tested. The results indicate the presence of signs of regional income convergence in Brazil, but with important oscillations in the evolution of inequality over time as well as across regions within the country. The association of regional inequality with national income growth produced interesting results, indicating a promising line for future research. Received: April 1996/Accepted: February 2000     

Spatio-temporal evolution of regional inequality and contribution decomposition of economic growth: A case study of Jiangsu Province,China

Regional inequality in the process of economic growth has recently been a popular topic. This paper creatively proposes contribution decomposition methods to divide various regions' contributions into economic contribution and population contribution. The methods consider not only economic growth but also population change, which may be more effective than the traditional method that uses the per capita GDP (gross domestic product) as its single measurement indicator. Moreover, the objective is to take a step forward and reveal the spatio-temporal evolution characteristics of regional disparities by integrating barycentre model and economic development equilibrium model. Lastly, the applicability of the research method proposed in this paper is verified by a case study of Jiangsu province, China; the results show a new regional economic pattern in Jiangsu province.     

The spatial and temporal dynamics of US regional income inequality, 1950–1989

The inverted-U hypothesis which so influenced research on regional income inequality is obsolete and does not predict or explain the recent rise in regional inequality. We argue that the regional dynamics literature on polarization, polarization reversal and spatial restructuring offers more powerful explanations to changes in regional income inequality. In addition to the conventional approach of measuring systemic inequality, the empirical analysis in this paper emphasizes inequality variations, which put into focus the interplay between regional dynamics and regional income inequality. The findings highlight the impact of sectoral shifts and global spatial restructuring on the US regional economy, where new cores of growth and renewed growth are emerging.     

Impacts of national development and decentralization policies on regional income disparity in Korea

This paper analyzed the effects of national development and decentralization policies on the regional income disparity in Korea. It also attempted to test whether there was a structural change in the causal relationship between income inequality and its determinant factors. This study found that the degree of variation in regional incomes was positively correlated with the spatial distribution of decentralization instruments such as educational services, employment, infrastructure facilities, and information network variables. The effects of some decentralization policies on regional income inequality were fully realized within a period of three years. Finally, the impacts of the spatial decentralization of public goods on regional inequality fluctuated until the early 1980s but were stabilized as industrial restructuring and spatial reorganization progressed during the 1990s. Received: December 2001/Accepted: June 2002     

An Exploration Of The Relationship Between Changing Inequality Of Individual,Household And Regional Inequality In Australian Cities

The changes in neighbourhood income inequality noted in Gregory and Hunter (1995) indicate that significant changes in the nature of Australian cities have occurred since the mid-1970s. This paper seeks to establish that the regional dimension of income inequality is becoming a more important component of overall inequality. Furthermore, low status and high status areas are becoming increasingly homogenous with more low income households living together in low status neighbourhoods and higher income households living elsewhere. The inadequacies of the regional income data currently available means that it is difficult to explore changes in social welfare in any detail.     

Impacts of regional development strategies on growth and equity of Korea: A multiregional CGE model

This paper is concerned with the assessment of major regional development strategies such as the three Coastal area development strategies (East Coast Development, South Coast Development, and West Coast Development) and the Seoul-Pusan development corridor strategy in terms of efficiency and equity. Multiregional Computable General Equilibrium for Korea is developed to capture the economic impact of regional investment expenditures, estimating the time-series influences of regional development alternatives on economic growth, inflation, welfare, income distribution, and interregional economic inequality for ten periods. In a sense that the main point of concern in the national development planning of Korea is with the question of improvement of national competitiveness with more equitable interregional income distribution, it is necessary to promote the West Coast region rather than the Seoul-Pusan development corridor. The West Coast regional development can lead to substantial gain in GDP and reduction in regional income disparity. In a multinational economic perspective, this regional development is expected to contribute to the economic cooperation of Northeast Asia and to enhancing the joint comparative advantages between China and Korea. However, it might worsen the income inequality in the long run. Received: September 1999/Accepted: September 2001     

Demography and evolution of regional inequality

This paper addresses the importance of life cycle aspects in explaining the evolution of regional income inequality. The analysis of household microdata organized in age cohorts shows that Brazilian regional income inequality has different dynamics across generations, with income convergence being observed only for the older generations. The larger income share of younger generations produces a low speed of convergence in the country. When retirement payments, pensions, and other government transfers are excluded from income, convergence is not observed even for the older generations.     

Income distribution analysis at the state Planning Region level

This study examines the role of subnational governmental units in the “distribution branch” of the Musgrave conceptual fiscal frame-work. The study analyzes the size distribution of family personal income in the 19 county North Central Planning Region of Texas. The measure of inequality used is the Gini ratio (Lorenz curves are also presented) which is calculated for each county and for the region for the years 1950, 1960 and 1970. Multiple regression analysis is then used to explain the variation in distributional inequality among the counties. The variables tested in the regression for each year included: median family income, manufacturing employment, rural-farm residence, an index of inequality in the distribution of education, female labor force participation, race, female family headship and age distribution of the population. The explanatory power of the variables varied from year to year and only the best results are presented. The results indicated that inequality increases with (1) the proportion of non-whites in the population, (2) the percent of the population over 65 years of age and (3) the degree of inequality in the distribution of education. In light of the results, the authors conclude that subnational governments could play a positive role in the activities of the Musgrave “distribution branch.” National programs with greater distributional equality as their objective could be reinforced through the activities of such subnational governmental units as regional councils of government. The COG roles in regional manpower planning and regional transportation planning are suggested as areas where regional programs can influence in a positive fashion some of the factors explaining income inequality.     

江苏省县市城市化水平差异研究

本文运用单一指标和复合指标两种类型,结合泰尔指数和因子分析法,对江苏省县市城市化水平差异的演变轨迹和现状特征进行分析,结果发现改革开放以来江苏省县市人口城市化水平总差异缩小的同时,苏南、苏中与苏北三大地区之间差异不断缩小,但对它总差异的贡献不断扩大,三大地区内部差异也不断缩小,且苏北地区内部县市城市化水平差异最大,在区域城市化水平总差异中一直占据主导地位。江苏省县市城市化水平综合差异主要表现为城市现代化、建成区规模和密度差异三个方面,在空间上主要表现为南北梯度差异和市区与县域之间的差异。     

Closing the gap between absolute and relative measures of localization,concentration or specialization

Empirical studies on the evolution of concentration, specialization or localization of economic activity have provided ambiguous results that strongly depend on the researcher's choice of the reference. This paper develops a decomposition method for Theil indices of localization that clarifies where this ambiguity originates from. The method allows expressing the difference between absolute and relative Theil indices of localization in terms of Theil indices that are subject to straightforward interpretation. Illustrations show that the divergence of absolute from relative localization in the EU‐15 and in UK manufacturing is largely a statistical artifact inherited from the peculiarities of the industry classifications.     

中国建成区绿地率区域差异的多尺度分析

建成区绿地率区域差异具有显著的尺度依赖性,基于多尺度视角对其进行分析、综合研判不同尺度间关系,可更确切且全面地揭示其特征,为探寻最佳研究尺度,以及制定兼具差异化和协调性的城市绿地建设决策提供科学依据。综合运用标准差、变异系数、锡尔指数和尺度方差等方法,将地带、省、市3个尺度纳入统一的分析框架,探究1996—2015年中国建成区绿地率区域差异。1)差异测度研究表明,自1996年以来,我国建成区绿地率区域差异在3个尺度上长期存在,均呈现缩小趋势,并表现出明显的尺度效应。2)尺度方差分解结果显示,建成区绿地率尺度方差及构成由大到小依次为市级、省级、地带级,即尺度越小,其尺度方差越大,对区域差异的贡献份额越大。     

A spatial decomposition of the shift-share components of labour productivity inequality in Italy

This paper explores the components of aggregate labour productivity inequality between Italian regions from 2000 to 2013. The Gini index of inequality in aggregate labour productivity is decomposed, showing the extent to which sector productivity differentials and differences in industry-mix contribute to regional productivity inequality. In addition, the contribution of the interaction between differences in industry-mix and sector productivity differentials is revealed by the decomposition. Each of these contributions to inequality is measured by considering the spatial dimension of regional inequality, since the contributions of inequality between non-neighbouring regions and inequality between neighbouring regions are separated.     

The effects of trade openness on regional inequality in Mexico

This paper attempts to shed light on the debate about the effect of trade openness on regional inequality, by exploring the specific mechanisms through which this relationship might operate. It does so by testing the hypothesis, based on endogenous growth theory, that a region’s ability to capture the benefits of trade openness depends on key regional characteristics—its critical endowments—and therefore the degree to which trade will reduce regional inequality in a given country is mediated by the geographic distribution of its endowments. I test the hypothesis in Mexico, using statistical analysis of an original sub-national dataset that runs from 1940 to the present. The results indicate that opening up to trade benefits more those regions with lower levels of education, thereby tending to reduce regional inequality. However, opening up to trade also benefits more those regions with higher levels of income and infrastructure, thereby tending to increase regional inequality. This latter effect is greater than the former, so that the overall effect of trade openness is to increase regional inequality.     

1980年代以来我国区域城市化差异的演变——及其影响因素

综述了关于我国城市化区域差异的研究成果,运用差异系数、基尼系数和泰尔指数测算了1980年代以来我国城市化水平的区域差异。研究发现全国省际城市化水平的相对差异一直在缩小,但2000年后发生了变化——全国分省的相对差异加速缩小,而三大区域之间的相对差异变得更加显著,并主导了全国的区域城市化差异。不仅如此,三大区域的绝对差异也越来越占据主导地位。进一步的研究发现,除了历史、地理和区位因素外,区域政策、经济发展差异、经济全球化、行政区划调整和省际人口迁移影响了区域城市化差异的演变趋势。最后本文提出了对未来城市化区域差异演变趋势的判断,并阐述了缩小城市化区域差异的现实政策意义。     

Regional income and wave energy deployment in Ireland

Alongside environmental benefits, renewable energy deployment is often evaluated on grounds of regional development. Focusing on wave energy deployment in Ireland, this paper quantifies employment-related welfare change net of associated subsidy costs. Although the added employment reduces inter-regional inequality, certain subsidies increase total income inequality by a greater extent. Total inequality increases by 0.25% in the preferred scenario. This pattern of incidence persists under an optimistic scenario where all manufacturing activity is carried out locally. This finding highlights that policies of regional development should consider the spatial distribution of associated subsidy costs.     

Intraregional income distribution and poverty: some investigations for the Netherlands, 1960-81

"This paper is addressed to intraregional income inequalities in the Netherlands. Various concepts are used to measure the degree of regional poverty. In addition, dissimilarity between intraregional income distributions is studied. At the provincial level, relatively small and decreasing dissimilarities are observed. However, at lower spatial levels (especially within metropolitan areas) much larger dissimilarities in mean income and income distribution occur. In the Netherlands, urban poverty has become a more intense and widespread phenomenon than rural poverty."     

Does Place Matter? The Effects of Concentrated Poverty on the Computer Use of Elementary Students

For several decades, scholars have investigated technological inequality within American society. These studies have focused on individual-level predictors of computer use such as income, education, and technological skills. Although these individual-level inequities are important contributors of technological inequalities, they neglect the importance of place, including neighborhood-level factors such as median income, racial composition, and educational attainment. The purpose of this study is to address this gap in the current literature by examining neighborhood-level effects of concentrated poverty on the trajectory of computer use (the change in computer use over a one-year period). Data were collected from fourth and fifth grade classrooms from two data points in a public school district in a mid-sized city in the southeastern United States. Results indicate that measures of concentrated poverty have an influence on the trajectory of computer use among elementary students. These findings suggest that social inequalities at the neighborhood level need to be addressed to further eliminate the digital divide in computer use among elementary students.