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Growth and Inequality: A study of Swedish municipalities
Dalarna University, School of Technology and Business Studies, Economics. (Microdata analysis)ORCID iD: 0000-0002-9748-9572
2013 (English)Report (Other academic)
Abstract [en]

This paper explores the relationship between the growth rate of the average income and income inequality using data at the municipal level in Sweden for the period 1992-2007. We estimate a fixed effects panel data growth model where the within-municipality income inequality is one of the explanatory variables. Different inequality measures (Gini coefficient, top income shares, and measures of inequality in the lower and upper ends of the income distribution) are also examined. We find a positive and significant relationship between income growth and income inequality, measured as the Gini coefficient and top income shares, respectively. In addition, while inequality at the upper end of the income distribution is positively associated with the income growth rate, inequality at the lower end of the income distribution seems to be negatively related to the growth rate. Our findings also suggest that increased income inequality enhances growth more in municipalities with a high level of average income than in those with a low level of average income.

Place, publisher, year, edition, pages
Borlänge: Högskolan Dalarna, 2013. , 27 p.
Series
Working papers in transport, tourism, information technology and microdata analysis, ISSN 1650-5581 ; 2013:28
Keyword [en]
Growth, inequality, Gini coefficient, panel data model, municipalities
National Category
Economics
Research subject
Komplexa system - mikrodataanalys
Identifiers
URN: urn:nbn:se:du-13326OAI: oai:DiVA.org:du-13326DiVA: diva2:667658
Available from: 2013-11-27 Created: 2013-11-27 Last updated: 2015-11-19Bibliographically approved

Open Access in DiVA

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf