Income and educational inequalities in the regions of the European Union: Geographical spillovers under welfare state restrictions

摘要

This paper uses a balanced dataset extracted from the European Community Household Panel data survey for 94 regions over the period 1995-2000 to examine the relationship between income and educational inequalities in the regions of the European Union. It highlights the importance of geography and institutions in accounting for the economic performance of the European regions. The regression results suggest a positive relationship between income and educational inequalities, which have evolved differently across welfare regimes. Using different designs of spatial weights matrices which concern not only distance, but also the welfare regime, this paper shows that both spatial autocorrelation and spatial heterogeneity matter for inequalities.