Skip to main content

The Determinants of Regional Educational Inequality in Western Europe

  • Chapter
  • First Online:
Innovation, Growth and Competitiveness

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

This chapter provides an empirical study of the determinants of educational inequality across regions of the EU. Using the European Community Household Panel dataset for 102 regions over the period 1995–2000, it analyses how microeconomic changes in income distribution as well as in educational attainment affect educational inequality. The different static and dynamic panel data analyses conducted reveal the complexity of the interaction between income and education. Educational attainment seems to curb the increase in educational inequality. While the impact of income per capita is unclear, the relationship between income inequality and educational inequality is positive and robust to the model specification. Other results indicate that women’s access to work has a negative impact on inequality and that there is an EU North–South and urban–rural divide. Educational inequality is lower in social-democratic welfare states, in mainly Orthodox areas, and in regions with North/Central family structures. All the results are robust to changes in the definition of income distribution.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Walters (2000: 254), however, argues that educational expansion alone does not change the relative position of social groups in the “education queue”, and elites manage to maintain their status by getting more education than the masses.

  2. 2.

    Although the boundaries of the welfare states are not well defined, the classification assumes that a country belongs to only one welfare state regime. In reality, there is no single pure case (Esping-Andersen 1990).

  3. 3.

    Sources: http://www.cia.gov/cia/publications/factbook;

    http://commons.wikimidia.org/wiki/Image:Europe_religion_map_de.png;

    http://csi-int.org/world_map_europa_religion.php

  4. 4.

    \( t = 1 \) denotes 1995, …, \( t = 6 \) denotes 2000.

  5. 5.

    The REs results are not reported because of space constraints, but may be obtained upon request.

  6. 6.

    We also controlled for work access of the population – measured as the percentage of normally working respondents (source: ECHP) and as the percentage of economic activity rate of the total population (source: EUROSTAT) – and inactivity. The economic activity rate of the total population is negatively associated with educational inequality, while the remaining two variables are not statistically significant. Greater regional access to work implies higher regional earnings which, in turn, increase the possibility of entering higher education. Conversely, the presence of pools of people with low skills would contribute to social exclusion and to the perpetuation of educational inequality (Rodríguez-Pose 2002). The coefficients of educational attainment, income per capita, and income inequality are robust to the introduction of control variables.

  7. 7.

    Controlling for inactivity, its coefficient is negative and statistically significant. It is likely to show that the higher the percentage of inactive young people, the lower the educational inequality in the long run, because more widespread access to education means that young people are kept out of the labour market, as reflected in the high incidence of youth inactivity (Rodríguez-Pose 2002). Additionally, the impact of the percentage of normally working respondents is not clear, while that of the economic activity rate of total population is negative and statistically significant.

References

  • Acemoglu D, Pischke J-S (2000) Does inequality encourage education? Mimeo, MIT and LSE

    Google Scholar 

  • Arellano M, Bond S (1991) Some tests of specification for panel data – Monte-Carlo evidence and an application to employment equations. Rev Econ Stud 58:277–297

    Article  Google Scholar 

  • Ayala L, Martinez R, Ruiz-Huerta J (2002) Institutional determinants of the unemployment earnings inequality trade-off. Appl Econ 34:179–195

    Article  Google Scholar 

  • Baltagi BH (2005) Econometric analysis of panel data. Wiley, Chichester

    Google Scholar 

  • Banerjee AV, Newman AF (1993) Occupational choice and the process of development. J Polit Econ 101:274–298

    Article  Google Scholar 

  • Barnes S-A, Green A, Orton M, Bimrose J (2005) Redressing gender inequality in employment: the national and sub-regional policy ‘fit’. Local Econ 20:154–167

    Article  Google Scholar 

  • Barr NA (2004) The economics of the welfare state. Oxford University Press, Oxford

    Google Scholar 

  • Baumont C, Ertur C, Le Gallo J (2003) Spatial convergence clubs and the European regional growth process. In: Fingleton B (ed) European regional growth. Springer, Berlin

    Google Scholar 

  • Becker GS (1964) Human capital: a theoretical and empirical analysis with special reference to education. Columbia University Press for National Bureau of Economic Research, New York

    Google Scholar 

  • Becker GS, Tomes N (1986) Human capital and the rise and fall of families. J Labor Econ 4:S1–S39

    Article  Google Scholar 

  • Bénabou R (1996) Inequality and growth. National Bureau of Economic Research, Cambridge, MA

    Google Scholar 

  • Berthoud R, Iacovou M (2004) Social Europe: living standards and welfare states. Edward Elgar, Cheltenham, UK, Northampton, MA

    Google Scholar 

  • Birdsall N, Estelle J (1993) Efficiency and equity in social spending: how and why governments misbehave. In: Lipton M, Jvd Gaag (eds) Including the poor: proceedings of a symposium organized by the world bank and the international food policy research institute. World Bank, Washington, D.C

    Google Scholar 

  • Blau PM, Duncan OD (1967) The American occupational structure. Wiley, New York

    Google Scholar 

  • Blöndal S, Field S, Girouard N (2002) Investment in human capital through post-compulsory education and training: Selected efficiency and equity aspects. OECD Economics Working Paper No. 333, Organization for Economic Co-Operation and Development (OECD) – Economics Department (ECO), Paris

    Google Scholar 

  • Borooah VK (1999) Employement inequality, employment regulation and social welfare. Working Paper no. 11/99, International Center for Economic Research, Turin, Italy

    Google Scholar 

  • Brakman S, Marrewijk Cv, Garretsen H (2001) An introduction to geographical economics: trade, location and growth. Cambridge University Press, Cambridge, New York

    Google Scholar 

  • Breusch TS, Pagan AR (1980) The Lagrange multiplier test and its applications to model specification in econometrics. Rev Econ Stud 47:239–253

    Article  Google Scholar 

  • Ceroni CB (2001) Poverty traps and human capital accumulation. Economica 68:203–219

    Article  Google Scholar 

  • Checchi D (2000) Does educational achievement help to explain income inequality?: Departmental Working Papers 2000–11. Department of Economics, University of Milan, Italy

    Google Scholar 

  • Cheshire PC, Magrini S (2006) Population growth in European cities: weather matters – but only nationally. Reg Stud 40:23–37

    Article  Google Scholar 

  • Coleman MT (1991) The division of household labor: Suggestions for future empirical consideration and theoretical development. In: Blumberg RL (ed) Gender, family, and economy: the triple overlap. Sage, Newbury Park, CA

    Google Scholar 

  • Court G (1995) Women in the labour market: two decades of change and continuity. Institute for Employment Studies Report 294, Oct 1995, ISBN 978-1-85184-221-6

    Google Scholar 

  • DiPrete TA, McManus PA (2000) Family chance, employment transitions, and the welfare state: household income dynamics in the united states and germany. Am Sociol Rev 65:343–370

    Article  Google Scholar 

  • Dur R, Teulings C, Van Rens T (2004) Should higher education subsidies depend on parental income? Oxf Rev Econ Policy 20:284–297

    Article  Google Scholar 

  • Esping-Andersen G (1990) The three worlds of welfare capitalism. Polity, Cambridge

    Google Scholar 

  • Esping-Andersen G (2002) Towards the good society, once again? In: Esping-Andersen G, Gallie D, Hemerijck A, Myles J (eds) Why we need a new welfare state. Oxford University Press, Oxford

    Book  Google Scholar 

  • European Commission (1999) The European regions: sixth periodic report on the socio-economic situation in the regions of the European union. Official Publication Office, Luxembourg

    Google Scholar 

  • Fairbanks D (1977) Religious forces and morality policies in American states. West Polit Q 30:411–417

    Article  Google Scholar 

  • Feagin JR (1975) Subordinating the poor: welfare and American beliefs. Prentice-Hall, Englewood Cliffs, NJ

    Google Scholar 

  • Ferrera M (1996) The “southern model” of welfare in social Europe. J Eur Soc Policy 6:17–37

    Article  Google Scholar 

  • Fischer MM, Stirbock C (2006) Pan-European regional income growth and club convergence. Ann Reg Sci 40:693–721

    Article  Google Scholar 

  • Gallup JL, Sachs JD, Mellinger AD (1999) Geography and economic development. Int Reg Sci Rev 22:179–232

    Article  Google Scholar 

  • Galor O, Tsiddon D (1997) The distribution of human capital and economic growth. J Econ Growth 2:93–124

    Article  Google Scholar 

  • Geist C (2005) The welfare state and the home: regime differences in the domestic division of labour. Eur Sociol Rev 21:23–41

    Article  Google Scholar 

  • Glaeser EL (1999) Learning in cities. J Urban Econ 46:254–277

    Article  Google Scholar 

  • Graham C (2002) Mobility, opportunity, and vulnerability: the dynamics of poverty and inequality in a global economy. J Hum Dev 3:57–94

    Article  Google Scholar 

  • Hannum E, Buchmann C (2005) Global educational expansion and socio-economic development: an assessment of findings from the social sciences. World Dev 33:333–354

    Article  Google Scholar 

  • Hausman JA (1978) Specification tests in econometrics. Econometrica 46:1251–1271

    Article  Google Scholar 

  • Heath WC, Waters MS, Watson JK (1995) Religion and economic welfare – an empirical analysis of state per capita income. J Econ Behav Org 27:129–142

    Article  Google Scholar 

  • Higgins M, Williamson J (1999) Explaining inequality the world round: cohort size, Kuznets curves, and openness. NBER Working Paper No. 7224, National Bureau of Economic Research

    Google Scholar 

  • Hunt MO (2002) Religion, race/ethnicity, and beliefs about poverty. Soc Sci Q 83:810–831

    Article  Google Scholar 

  • Hutcheson J, Taylor GA (1973) Religious variables, political system characteristics, and policy outputs in American states. Am J Polit Sci 17:414–421

    Article  Google Scholar 

  • Iannaccone LR (1992) Sacrifice and stigma – reducing free-riding in cults, communes, and other collectives. J Polit Econ 100:271–291

    Article  Google Scholar 

  • Iannaccone LR (1998) Introduction to the economics of religion. J Econ Lit 36:1465–1495

    Google Scholar 

  • Jensen P, Nielsen HS (1997) Child labour or school attendance? Evidence from Zambia. J Popul Econ 10:407–424

    Article  Google Scholar 

  • Keister LA (2003) Religion and wealth: the role of religious affiliation and participation in early adult asset accumulation. Soc Forces 82:175–207

    Article  Google Scholar 

  • Lam D, Levison D (1991) Declining inequality in schooling in Brazil and its effects on inequality in earnings. J Dev Econ 37:199–225

    Article  Google Scholar 

  • Lehrer EL (1999) Religion as a determinant of educational attainment: an economic perspective. Soc Sci Res 28:358–379

    Article  Google Scholar 

  • Leppel K (1987) Income effects on living arrangements – differences between male and female householders. Soc Sci Res 16:138–153

    Article  Google Scholar 

  • Loury GC (1981) Intergenerational transfers and the distribution of earnings. Econometrica 49:843–867

    Article  Google Scholar 

  • Ludwig J (1999) Information and inner city educational attainment. Econ Educ Rev 18:17–30

    Article  Google Scholar 

  • Mayer SE (2001) How did the increase in economic inequality between 1970 and 1990 affect children’s educational attainment? Am J Sociol 107:1–32

    Article  Google Scholar 

  • Mitchener KJ, McLean IW (2003) The productivity of us states since 1880. J Econ Growth 8:73–114

    Article  Google Scholar 

  • Mocan HN (1999) Structural unemployment, cyclical unemployment, and income inequality. Rev Econ Stat 81:122–134

    Article  Google Scholar 

  • Motonishi T (2006) Why has income inequality in Thailand increased? An analysis using surveys from 1975 to 1998. Jpn World Econ 18:464–487

    Article  Google Scholar 

  • Ram R (1990) Educational expansion and schooling inequality – international evidence and some implications. Rev Econ Stat 72:266–273

    Article  Google Scholar 

  • Rodríguez-Pose A (2002) The European Union: economy, society and polity. Oxford University Press, Oxford

    Google Scholar 

  • Rodríguez-Pose A, Tselios V (2009) Education and income inequality in the regions of the European Union. J Reg Sci 49:411–437

    Article  Google Scholar 

  • Sachs JD, Mellinger AD, Gallup JL (2001) The geography of poverty and wealth. Sci Am 284:70–75

    Article  Google Scholar 

  • Saint-Paul G, Verdier T (1993) Education, democracy and growth. J Dev Econ 42:399–407

    Article  Google Scholar 

  • Sandefur GD, Wells T (1999) Does family structure really influence educational attainment? Soc Sci Res 28:331–357

    Article  Google Scholar 

  • Sargan JD (1958) The estimation of economic relationships using instrumental variables. Econometrica 26:393–415

    Article  Google Scholar 

  • Sen AK, Foster JE (1997) On economic inequality. Clarendon and Oxford University Press, Oxford; New York

    Google Scholar 

  • Stier H, Lewin-Epstein N, Braun M (2001) Welfare regimes, family-supportive policies, and women’s employment along the life-course. Am J Sociol 106:1731–1760

    Article  Google Scholar 

  • Swidler A (1986) Culture in action – symbols and strategies. Am Sociol Rev 51:273–286

    Article  Google Scholar 

  • Thomas V, Wang Y, Fan X (2001) Measuring education inequality: Gini coefficients of education. World Bank, Washington, D.C

    Google Scholar 

  • Thorbecke E, Charumilind C (2002) Economic inequality and its socioeconomic impact. World Dev 30:1477–1495

    Article  Google Scholar 

  • Tomes N (1985) Religion and the earnings function. Am Econ Rev 75:245–250

    Google Scholar 

  • Treiman DJ (1970). Industrialization and social stratification. In: Laumann E (ed) Social stratification: research and theory for the 1970s. Bobbs-Merrill, Indianapolis

    Google Scholar 

  • Tselios V (2008) Income and educational inequalities in the regions of the European Union: geographical spillovers under welfare state restrictions. Pap Reg Sci 87:403–430

    Article  Google Scholar 

  • Walters PB (2000) The limits of growth: school expansion and school reform in historical perspective. In: Hallinan MT (ed) Handbook of the sociology of education. Kluwer Academic and Plenum, New York, London

    Google Scholar 

  • Weber M (1922) The social psychology of world religions. In: Gerth HH, Wright Mills C (eds) From Max Weber: essays in sociology. Oxford University Press, New York

    Google Scholar 

  • Wheeler CH (2004) Wage inequality and urban density. J Econ Geogr 4:421–437

    Google Scholar 

  • White H (1980) A heteroskedasticity consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica 48:817–838

    Article  Google Scholar 

  • Wolf A (2002) Does education matter? Myths about education and economic growth. Penguin, London

    Google Scholar 

  • Woods D (2004) Latitude or rectitude: geographical or institutional determinants of development. Third World Q 25:1401–1414

    Article  Google Scholar 

Download references

Acknowledgements

The authors grateful to the European Commission [DYNREG Programme, contract no 028818 (CIT5)] and Eurostat for granting access to the European Community Household Panel (ECHP). Rodríguez-Pose gratefully acknowledges the financial support of a Leverhulme Trust Major Research Fellowship during the final stages of this project. The work was also part of the PROCIUDAD research programme and of the independent UK Spatial Economics Research Centre funded by the Economic and Social Research Council (ESRC), Department for Business, Enterprise and Regulatory Reform, Communities and Local Government, and the Welsh Assembly Government. The support of the funders is acknowledged. The views expressed are those of the authors and do not represent the views of the funders or of Eurostat.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Andrés Rodríguez-Pose .

Editor information

Editors and Affiliations

Appendix A: Standardized Coefficients

Appendix A: Standardized Coefficients

Table A1 Independent variables are income per capita and income inequality for the (a) whole of the population (b) normally working people
Table A.2 FEs: independent variables are income per capita and income inequality for normally working people
Table A.3 OLS: independent variables are income per capita and income inequality for normally working people
Table A.4 Short run GMM
Table A.5 Long run GMM: independent variables are income per capita and income inequality for normally working people
Table A.6 Short run GMM: independent variables are income per capita and income inequality for normally working people

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Rodríguez-Pose, A., Tselios, V. (2011). The Determinants of Regional Educational Inequality in Western Europe. In: Nijkamp, P., Siedschlag, I. (eds) Innovation, Growth and Competitiveness. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-14965-8_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-14965-8_7

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-14964-1

  • Online ISBN: 978-3-642-14965-8

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

Publish with us

Policies and ethics