Skip to main content

Advertisement

Log in

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

  • Original Paper
  • Published:
The Annals of Regional Science Aims and scope Submit manuscript

Abstract

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.

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

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Akita T (2003) Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method. Ann Reg Sci 37:55–77

    Article  Google Scholar 

  • Armstrong H (1995) Convergence among regions of the European Union 1950–1990. Pap Reg Sci 74:152–142

    Google Scholar 

  • Bairoch P (1993) Economics and world history: myths and paradoxes. University of Chicago Press, Chicago

    Google Scholar 

  • Balisacan A, Fuwa N (2003) Is spatial inequality increasing in the Philippines? WIDER conference on spatial inequality in Asia. Tokyo, pp 28–29

  • Berend IT (2003) Past convergence within Europe: core-periphery diversity in modern economic development. In: Tumpel-Guerell G, Mooslechner P (eds). Economic convergence and divergence in Europe. Edward Elgar, Cheltenham

    Google Scholar 

  • Blažek J (1996) Meziregionální rozdíly v České republice v transformačním období. Sborníík ČGS 101:265–277

    Google Scholar 

  • Bourguignon F (1979) Decomposable income inequality measures. Econometrica 47:901–920

    Article  Google Scholar 

  • Bourguignon F, Morrisson Ch (2002) Inequality among world citizens: 1820–1992. Am Econ Rev 92:727–744

    Article  Google Scholar 

  • Cornia G, Kiiski S (2001) Trends in income distribution in the post-world war II period. WIDER Discussion Paper 89

  • Cowell F (1980) On the structure of additive inequality measures. Rev Econ Stud 47:521–531

    Article  Google Scholar 

  • Deininger K, Squire L (1996) A new data set measuring income inequality. World Bank Econ Rev 10:565–591

    Google Scholar 

  • Dostál P, Hampl M (2000) Globalisation: processes of integration or multi-polarisation. Acta Univ Carol Geogr XXXV:5–20

    Google Scholar 

  • Elbers Ch, Lanjouw P, Mistiase J, Özler B, Simler K (2002) Are neighbours unequal? Estimating local inequality in three developing countries. WIDER-Cornell-LSE conference on spatial inequality and development. London, pp 28–30

  • Elbers Ch, Lanjouw JO, Lanjouw P, Leite P (2004) Inequality in Brazil: new estimates from combined PPV-PNAD data. Unpublished manuscript, World Bank

  • Felsenstein D, Portnov BA (2005) Understanding regional inequalities in small countries. Reg Stud 39:647–658

    Article  Google Scholar 

  • Firebaugh G (2003) The new geography of global income inequality. Harvard University Press, Cambridge

    Google Scholar 

  • Forster M, Jesuit D, Smeeding T (2005): Regional poverty and income inequality in Central and Eastern Europe: evidence from the Luxembourg income study. In: Kanbur R, Venables AJ (eds) Spatial inequality and development. Oxford University Press, Oxford, pp 311–347

    Google Scholar 

  • Galbraith J, Krytynskaia L, Wang Q (2004) The experience of rising inequality in Russia and China during the transition. Eur J Comp Econ 1:87–106

    Google Scholar 

  • Gray D, Mills JA, Zandvakili MS (2004) An analysis of differential provincial income inequality trends in Canada. Res Econ Inequal 12:443–461

    Article  Google Scholar 

  • Hampl M (2000) Reality, society and geographical/environmental organization: searching for an integrated order. Charles University Faculty of Science, Prague

    Google Scholar 

  • Kuznets S (1955) Economic growth and income inequality. Am Econ Rev 45:1–28

    Google Scholar 

  • Loikkanen H, Riihelä M, Sullström R (2005) Regional income convergence and inequality in boom and bust, Results from microdata in Finland 1971–2000. In: Felsenstein D, Portnov B (eds). Regional disparities in small countries. Springer, Berlin

    Google Scholar 

  • Maddison A (2003) The world economy: historical statistics. OECD Development Centre, Paris

    Google Scholar 

  • Marshall AW, Olkin I (1979) Inequalities: theory of majorization and its applications. Academic, New York

    Google Scholar 

  • Milanovic B (2002) True world income distribution, 1988 and 1993: first calculation based on household surveys alone. Econ J 112:51–92

    Article  Google Scholar 

  • Minot N, Baulch B, Epprecht M (2003) Poverty and inequality in Vietnam: spatial patterns and geographic determinants. IFPRI, Washington DC

    Google Scholar 

  • Mishra P, Parikh A (1992) Household consumer expenditure inequalities in India: a decomposition analysis. Rev Inc Health 38:237–243

    Article  Google Scholar 

  • Morrisson Ch, Murtin F (2004) History and prospects of inequality among Europeans. European economic association and econometric society 2004 meetings. Madrid, pp 20–24

  • Motonishi T (2003) Why has income inequality in Thailand increased: an analysis using 1975–1998 surveys. Asian Development Bank, Manila

    Google Scholar 

  • Novotný J (2004a) The socio-geographical differentiation of the world with a special attention to regional inequalities. Dissertation (in Czech), Charles University, Prague

  • Novotný J (2004b) Decomposition of global and European socio-economic inequalities with attention to their regional dimensions. Reg Sect Econ Stud 4:59–78

    Google Scholar 

  • Parente P, d’Uva TB (2003) Evolução da pobreza e da desigualdade em Portugal no período 1995 a 1997. Rev Estud Demogr 34:73–93

    Google Scholar 

  • Sala-i-Martin X (2002) The disturbing rise of global inequality. NBER Working Paper w8904

  • Schwarze J (1996) How income inequality changed in Germany following reunification: an empirical analysis using decomposable inequality measures. Rev Inc Wealth 42:1–11

    Article  Google Scholar 

  • Shorrocks A (1984) Inequality decomposition by population subgroups. Econometrica 52:1369–1386

    Article  Google Scholar 

  • Shorrocks A, Wan G (2005) Spatial decomposition of inequality. J Econ Geogr 5:59–81

    Article  Google Scholar 

  • Simler K, Nhate V (2005) Poverty, inequality, and geographic targeting. FCND discussion paper 192

  • Suarez-Villa L, Cuadrado-Roura JR (1993) Regional economic integration and the evolution of disparities. Pap Reg Sci 72:369–387

    Article  Google Scholar 

  • Tadjoeddin MZ (2003) Aspiration to inequality: regional disparity and centre-regional conflicts in Indonesia. WIDER conference on Spatial Inequality in Asia. Tokyo, pp 28–29

  • Theil H (1972) Statistical decomposition analysis. North Holland, Amsterdam

    Google Scholar 

  • Williamson JG (1965) Regional inequality and the process of national development: a description of the patterns. Econ Dev Cult Chang 13:3–45

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Josef Novotný.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Novotný, J. On the measurement of regional inequality: does spatial dimension of income inequality matter?. Ann Reg Sci 41, 563–580 (2007). https://doi.org/10.1007/s00168-007-0113-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00168-007-0113-y

Keywords

Navigation