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Coping with Regional Inequality in Sweden: Structural Change, Migrations and Policy, 1860-2000

Enflo, Kerstin LU and Rosés, Joan LU (2015) In Economic History Review 68(1). p.191-217
Abstract
In many countries, regional income inequality has followed an inverted U-shaped curve, growing during industrialisation and market integration and declining thereafter. By contrast, Sweden’s regional inequality dropped from 1860 to 1980 and did not show this U-shaped pattern. Accordingly, today’s regional income inequality in Sweden is lower than in other European countries. We note that the prime mover behind the long-run reduction in regional income differentials was structural change, whereas neo-classical and technological forces played a relatively less important role. However, this process of regional income convergence can be divided into two major periods. During the first period (1860-1940), the unrestricted action of market... (More)
In many countries, regional income inequality has followed an inverted U-shaped curve, growing during industrialisation and market integration and declining thereafter. By contrast, Sweden’s regional inequality dropped from 1860 to 1980 and did not show this U-shaped pattern. Accordingly, today’s regional income inequality in Sweden is lower than in other European countries. We note that the prime mover behind the long-run reduction in regional income differentials was structural change, whereas neo-classical and technological forces played a relatively less important role. However, this process of regional income convergence can be divided into two major periods. During the first period (1860-1940), the unrestricted action of market forces, particularly the expansion of markets and high rates of internal and international migrations, led to the compression of regional income differentials. In the subsequent period (1940-2000), the intended intervention of successive governments appears to have also been important for the evolution of regional income inequality. Regional convergence was intense from 1940 to 1980. In this period, governments aided the convergence in productivity among industries and the reallocation of the workforce from the declining to the thriving regions and economic sectors. During the next period (1980-2000), when regional incomes diverged, governments subsidised firms and people in the declining areas. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Convergence, regional policy, neo-classical growth model, labour reallocation
in
Economic History Review
volume
68
issue
1
pages
191 - 217
publisher
Wiley-Blackwell
external identifiers
  • wos:000347708300009
  • scopus:84921966982
ISSN
1468-0289
DOI
10.1111/1468-0289.12049
project
Swedish Regional Economic Growth in a European Perspective
language
English
LU publication?
yes
id
0c000297-bc26-415a-b323-2da3cae4db3f (old id 4173875)
alternative location
http://onlinelibrary.wiley.com/doi/10.1111/1468-0289.12049/pdf
date added to LUP
2013-11-22 08:57:11
date last changed
2017-07-02 03:09:06
@article{0c000297-bc26-415a-b323-2da3cae4db3f,
  abstract     = {In many countries, regional income inequality has followed an inverted U-shaped curve, growing during industrialisation and market integration and declining thereafter. By contrast, Sweden’s regional inequality dropped from 1860 to 1980 and did not show this U-shaped pattern. Accordingly, today’s regional income inequality in Sweden is lower than in other European countries. We note that the prime mover behind the long-run reduction in regional income differentials was structural change, whereas neo-classical and technological forces played a relatively less important role. However, this process of regional income convergence can be divided into two major periods. During the first period (1860-1940), the unrestricted action of market forces, particularly the expansion of markets and high rates of internal and international migrations, led to the compression of regional income differentials. In the subsequent period (1940-2000), the intended intervention of successive governments appears to have also been important for the evolution of regional income inequality. Regional convergence was intense from 1940 to 1980. In this period, governments aided the convergence in productivity among industries and the reallocation of the workforce from the declining to the thriving regions and economic sectors. During the next period (1980-2000), when regional incomes diverged, governments subsidised firms and people in the declining areas.},
  author       = {Enflo, Kerstin and Rosés, Joan},
  issn         = {1468-0289},
  keyword      = {Convergence,regional policy,neo-classical growth model,labour reallocation},
  language     = {eng},
  number       = {1},
  pages        = {191--217},
  publisher    = {Wiley-Blackwell},
  series       = {Economic History Review},
  title        = {Coping with Regional Inequality in Sweden: Structural Change, Migrations and Policy, 1860-2000},
  url          = {http://dx.doi.org/10.1111/1468-0289.12049},
  volume       = {68},
  year         = {2015},
}