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In this paper we examine the regional distribution of welfare in the European Union between 1993 and 2000. In order to achieve this aim, we use a set of econometric techniques proposed in the literature for dealing with spatial data. The results obtained reveal the presence of positive spatial dependence in the variable of interest. This means that spatially close regions register similar welfare levels in the European context. The empirical evidence presented also shows that high welfare regions tend to be those characterised by the presence of certain types of advanced services with elevated productivity and by a relatively important endowment of human capital. However, the regional unemployment rates, the size of the agricultural sector and the non-market services are negatively correlated with the study variable. These results, moreover, are robust to the welfare measure considered in the analysis.
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Keywords: European Union; Welfare; disparities; income inequality; regions; spatial econometrics

Document Type: Research Article

Affiliations: Departamento de Economía, Universidad Pública de Navarra, Campus de Arrosadia s/n. 31006 Pamplona (Spain). s: ; [email protected]; [email protected], Email: [email protected]

Publication date: 2006-09-01

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