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Does income polarization affect economic growth? The case of the European regions

[journal article]

Ezcurra, Roberto

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Abstract This article examines the relationship between income polarization and economic growth in the regions of the European Union over the period 1993-2003. The results indicate that the level of income polarization is negatively associated with regional growth. This finding is in fact robust to various alternative specifications including a number of additional explanatory variables, such as initial per capita GDP, industry mix, human capital stock, population density or market potential. Furthermore, it should be noted that the observed negative correlation between polarization and economic performance does not depend on the number of groups used to analyse the degree of income stratification within the sample regions.
Classification Area Development Planning, Regional Research; Economics
Free Keywords Income polarization; Economic growth; Regions; European Union
Document language English
Publication Year 2009
Page/Pages p. 267-285
Journal Regional Studies, 43 (2009) 2
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)