In many countries, regional income inequality has followed an inverted U-shaped curve, growing during industrialization and market integration and declining thereafter. By contrast, Sweden's regional inequality dropped from 1860 to 1980 and did not exhibit 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 neoclassical and technological forces played a relatively less important role. However, this process of regional income convergence can be divided into three 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 migration, led to the compression of regional income differentials. During the next period (1940-80), regional convergence was even more intense. In this period, institutional arrangements favoured the reduction of productivity differentials across industries and successive governments aided the reallocation of the workforce from declining to thriving regions and economic sectors. During the last period (1980-2000), when regional incomes diverged, internal migration and structural change slowed. Furthermore, the development of knowledge-intensive service industries favoured economic growth in the main metropolitan areas.

Regional inequality is low in Sweden compared to most other OECD countries, but has been rising over the past decades, fuelling discontent in parts of the country, whose inhabitants feel left behind. The younger population is increasingly concentrated in the largest cities, which also enjoy the highest productivity growth. Demographic trends exacerbate the difficulty in providing equal public services across the country. Healthy public finances are allowing the government to increase its support to municipalities and regions to adjust to demographic developments and local operating conditions. Beyond this effort, keeping regional inequality in check will require upgrading the sub-national government fiscal framework, enhancing public service efficiency, especially through digitalisation, and promoting regional convergence further, especially by strengthening the role of universities in regional knowledge and innovation networks.

This book traces regional income inequality in Spain during the transition from a pre-industrial society to a modern economy, using the Spanish case to shed further light on the challenges that emerging economies are facing today. Regional inequality is currently one of the most pressing problems in the European Union, and this text presents a novel dataset covering 150 years to analyse long-run trends in regional per capita GDP. Spatial clustering and a new economic geography approach also contribute to the historical analysis provided, which points to the role played by spatial externalities and their growing relevance over time. To identify the presence of spatial dependence is crucial, not only for getting a better understanding of distribution dynamics, but also for economic policy purposes. What are the potential causes behind the disparities in regional per capita income and productivity? The authors answer this by comparing results with evidence available for other countries, chiefly France, Italy and Portugal, but is of global relevance.

This book presents a unified approach to the problem of inequality, combining results from a variety of research fields – the human life cycle, group dynamics, networks, markets, and economic geography. Its main message is that inequality emerges as the natural result of mechanisms operating both in individual human development and in social interaction. It posits that inequality is not an anomalous deviation from a naturally egalitarian social structure; quite to the contrary, inequality is to be expected as part of the human condition. The author states that the growth of inequality, on the other hand, is not a natural law – the level and character of inequality can be affected by collective decisions. This perspective on human inequality has potentially far-reaching consequences both for the political philosophy of inequality and for public policy-making. This book is of interest to a wide interdisciplinary social science readership, including public policy, decision sciences, economic geography, and life course studies.

This book is the first quantitative description of Europe’s economic development at a regional level over the entire twentieth century. Based on a new and comprehensive set of data, it brings together a group of leading economic historians in order to describe and analyze the development of European regions, both for nation states and for Europe as a whole. This provides a new transnational perspective on Europe’s quantitative development, offering for the first time a systematic long-run analysis of national policies independent from the use of national statistical units. The new transnational dimension of data allows for the analysis of national policies in a more thorough way than ever before. The book provides a comprehensive database at the level of modern NUTS 2 regions for the period 1900–2010 in 10-year intervals, and a panoramic view of economic development both below and above the national level. It will be of great interest to economic historians, economic geographers, development economists and those with an interest in economic growth.

Resolute policy action to protect households and businesses has mitigated the pandemic’s toll on the Swedish economy, which nevertheless contracted sharply in 2020. Growth is picking up on the back of strong manufacturing activity and exports, while vaccination brings hope for a gradual return to normality in sectors requiring face-to-face interaction.

Regional Studies is inextricably intertwined with history. Cultural and institutional legacies inform choices between different policy options, meaning that the past plays a crucial role in how we think about regional economic development, planning and policy. Through a selection of accessible theoretical, methodological and empirical chapters, this book explores the connections between regional development and history. Drawing on the expertise of scholars in several disciplines, it links history to topics such as behavioural geography, interdependence, divergence and regional and urban policy. This innovative book will be of interest to researchers across regional studies, planning, economic geography and economic history.