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Effect of privatisation on income inequality: a European analysis

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Abstract

This study analyses the link between privatisation reforms and income inequality on a sample of 25 European countries between 2003 and 2013. Previous literature has related privatisations with the level of poverty, welfare, and well-being of population, but findings regarding income inequality are scarce, especially in the European context. The empirical results of this study suggest a positive link between both topics, for different indicators of privatisation and inequality. Concretely, findings suggest that income inequality is higher in countries that have resorted to privatisation reforms to a greater extent. Then, social consequences should be considered when evaluating regulatory reform, such as privatisation.

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Funding

This paper is financed by Eusko Jaurlaritza / Gobierno Vasco/ Basque Government Grant Number IT 897/16.

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Authors and Affiliations

  1. Faculty of Economics and Business, Accounting and Business Administration Techniques, University of the Basque Country (UPV/EHU), Lehendakari Aguirre Avenue, 83, 48015, Bilbao, Spain

    Noemí Peña-Miguel

  2. Faculty of Economics and Business, Multidisciplinary Institute for Enterprise, University of Salamanca, Campus Unamuno, FES, 37007, Salamanca, Spain

    Beatriz Cuadrado-Ballesteros

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  1. Noemí Peña-Miguel
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  2. Beatriz Cuadrado-Ballesteros
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Correspondence to Noemí Peña-Miguel.

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Peña-Miguel, N., Cuadrado-Ballesteros, B. Effect of privatisation on income inequality: a European analysis. Empirica 48, 697–716 (2021). https://doi.org/10.1007/s10663-020-09484-4

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