Does the standard of living vary from region to region in Portugal and are spatial units in Portugal converging in income? We observe spatial error dependence between municipalities and estimate spatial econometric models to test convergence. For conditional convergence we conclude that primary sector employment, activity rate, and percentage of active population with higher education are important to distinguish the “steady state” of the regional economies, reflecting the labor market at regional level.
The author is pleased to acknowledge financial support from Fundação para a Ciência e a Tecnologia and FEDER/COMPETE (grant PEst-C/EGE/UI4007/2011). The author also gives thanks for the alterations suggested by António Bento Caleiro, John Bishop, and an anonymous referee.
Guerreiro, G. (2014), "Regional Income Convergence in Portugal (1991–2002)", Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting (Research on Economic Inequality, Vol. 22), Emerald Group Publishing Limited, pp. 351-381. https://doi.org/10.1108/S1049-258520140000022011Download as .RIS
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