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Begin New Search Topic Economic Inequality Political Geography Europe

1. Regional deprivation, individual prospects, and political resentment

Author:
Giovanni Facchini, Anja Neundorf, Sergi Pardos-Prado, and Cecilia Testa
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
Regional economic conditions affect livelihoods and the geography of political resentment. Yet, individuals do not equally partake in their region’s economic fortunes, and their perceptions of relative deprivation need not be the same. Grievances are likely to be shaped not only by income disparities but also by how personal prospects are tied to regional conditions. We argue that the interaction between subjective individual and regional relative deprivation crucially affects perceptions of shared experience and systemic unfairness. Through a large-scale survey experiment in Britain, we provide causal evidence that poor individuals in poor regions express more political resentment due to diminished personal financial prospects and social status. In contrast, political attitudes among poor and wealthy individuals are indistinguishable in affluent regions. Our findings reveal how reference groups affect subjective perceptions of relative deprivation and highlight the importance of egocentric mechanisms, whereby the local economy shapes expectations of individual prospects.
Topic:
Economic Inequality, Regional Economy, Social Status, and Political Resentment
Political Geography:
Britain and Europe

2. Tackling the UK's regional economic inequality: Binding constraints and avenues for policy intervention

Author:
Anna Stansbury, Dan Turner, and Ed Balls
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper analyzes binding constraints to productivity growth in the United Kingdom’s regions outside London and the greater South East. These analyses challenge a number of common arguments about the UK’s regional economic inequality problem. The authors find little evidence consistent with the hypotheses (i) that low shares of university graduates remain the primary constraint on growth for the UK’s regions; (ii) that there is a generalized issue with access to finance for firms outside the South East; or (iii) that low or falling regional migration rates are to blame for the persistence of the UK’s regional economic inequalities. Instead, they find evidence consistent with (i) a specific relative shortage of STEM degrees; (ii) binding transport infrastructure constraints within major non-London conurbations; (iii) a failure of public innovation policy to support clusters beyond the South East, in particular through the regional distribution of public support for research and development (R&D); and (iv) missed opportunities for higher internal mobility due to London’s overheating housing market. The authors also find some suggestive evidence consistent with constraints on access to early-stage equity financing for high growth-potential small and medium-sized enterprises in certain regions.
Topic:
Finance, Economic Growth, Economic Inequality, and Productivity
Political Geography:
United Kingdom and Europe

3. Distributional National Accounts (DINA) for Austria, 2004-2016

Author:
Stefan Jestl and Emanuel List
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper constructs distributional national accounts for Austria for the period 2004-2016. We enrich survey data with tabulated tax data and make it fully consistent with national accounts data. The comprehensive dataset allows us to analyse the distribution of macroeconomic growth across the income distribution and to explore the evolution of income inequality in pre-tax income over time. Our results suggest that the distribution of growth has changed over time, which had considerable repercussions on inequality. Inequality started to decline at the very beginning of the economic and financial crisis in 2007, however it has increased again after 2012. We further provide novel insights into the evolution of capital income for top income groups and explore redistribution mechanisms that operated in Austria. Government spending was found to play a key role for redistributive effects across the income distribution. In particular, the transfer system redistributes pre-tax income to a large extent.
Topic:
Migration, Labor Issues, and Economic Inequality
Political Geography:
Europe and Austria

4. The Impact of Income Inequality on Household Indebtedness in Euro Area Countries

Author:
Stefan Jestl
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the impact of income inequality on consumption-related household indebtedness at the household level. Using the first wave of the Eurosystem Household Finance and Consumption Survey data, the analysis sheds light on heterogeneous effects across euro area countries. The results suggest a positive impact of income inequality on consumption-related household indebtedness in a small sample of countries. We further employ a multilevel regression model to also take country’s macroeconomic characteristics into account, such as credit market and welfare state design. In this setting, we find an overall positive impact of income inequality on consumption-related household indebtedness.
Topic:
Economics, Inequality, Economic Inequality, and Macroeconomics
Political Geography:
Europe

5. Double Trouble: A Review of the Relationship between UK Poverty and Economic Inequality

Author:
Magali Duque, Abigail McKnight, and Mark Rucci
Publication Date:
11-2017
Content Type:
Research Paper
Institution:
Oxfam Publishing
Abstract:
The link between inequality and poverty has been highlighted by a number of international organisations, which have outlined a series of policy recommendations supporting the view that high levels of inequality need to be tackled even if the central objective is to reduce poverty. This report makes clear there is a positive correlation between income inequality and relative income poverty in the UK. The strength of this connection depends on which measure of inequality is used and this report makes no claim about causation – but the central conclusion is clear. We can no longer treat poverty and economic inequality as separate problems which can be tackled in isolation. They are instead closely linked and must be tackled together.
Topic:
Poverty, Labor Issues, Economic Inequality, and NGOs
Political Geography:
United Kingdom and Europe

6. Building a More Equal Scotland: Designing Scotland’s Poverty and Inequality Commission

Author:
David Eiser, Ryan McQuigg, and Francis Stuart
Publication Date:
04-2017
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
In 2015 Oxfam Scotland called for the creation of an Inequality Commission, building on Scotland’s politicians from across all parties stating their support to tackle economic inequality. The Scottish government has committed to establishing a Poverty and Inequality Commission in 2017–18, but its design will be critical. This report, produced in collaboration with the Fraser of Allander Institute, explores the scale of inequality in Scotland and the drivers behind it. The report examines some, but not all, of the intersecting and overlapping dimensions of economic inequality and poverty – as well as potential policy responses and the powers of the Scottish Parliament. The report then explores lessons from the work of previous commissions and makes a series of recommendations for the Scottish government as it establishes the new Poverty and Inequality Commission.
Topic:
Poverty, Governance, Inequality, and Economic Inequality
Political Geography:
United Kingdom, Europe, and Scotland

7. A Europe For the Many, Not the Few: Time to reverse the course of inequality and poverty in Europe

Author:
Teresa Cavero
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
Europe is facing unacceptable levels of poverty and inequality. Instead of putting people first, policy decision making is increasingly influenced by wealthy elites who bend the rules to their advantage, worsening poverty and economic inequality, while steadily and significantly eroding democratic institutions. Austerity measures and unfair tax systems across Europe are skewed in favour of powerful vested interests. It is time to reverse the course of poverty and inequality in Europe, putting people first.
Topic:
Poverty, European Union, Economic Inequality, and Elites
Political Geography:
Europe

8. For Richer or Poorer: The capture of growth and politics in emerging economies

Author:
Alice Krozer
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Oxfam Publishing
Abstract:
The emerging economies Brazil, China, India, Indonesia, Mexico, Russia, South Africa and Turkey - in short, the BRICSAMIT - have come to be considered the economic powerhouses of recent decades. Not only have these countries managed to reduce poverty; most have embarked on a steep economic growth path and play an increasingly influential role on the global scene. But today, all eight BRICSAMIT countries occupy the top ranks as some of the most unequal countries in the world. The price these countries - and millions of their citizens - pay for this is high. Excessive inequality hampers development prospects: negatively impacting growth potential, threatening poverty reduction, leading to mass migration flows and 'brain drain', and reducing opportunities for young people. This report, which was commissioned by civil society networks across the BRICSAMIT countries, aims to increase the urgency to tackle the structural causes of inequality by shedding light on the nature and scope of the issue in the BRICSAMIT, and the economic, political and social consequences these countries are now facing as a result.
Topic:
International Cooperation, Migration, Poverty, and Economic Inequality
Political Geography:
Africa, Russia, China, Europe, Indonesia, Turkey, Asia, South Africa, Brazil, South America, and Mexico