Multiple Scales of Income Inequality: A Longitudinal Analysis of Swedish Regions

Abstract

The subject of inequality and its geographical dimensions has seen a surge of interest in recent years. However, existing work tends to study inequality through single spatial scales, even though processes driving inequality operate at and across multiple scales. This article, therefore, investigates how inequality at the regional and local scale relates to phases of economic development in Sweden over three decades. The findings point towards a diverging trend of inequality between the regional and local scale, with a noticeable shift at the turn of the millennium. While the last decades were characterized by a slight regional convergence, inequality at the local scale continued to increase. Accounting for different regional contexts, economic growth and local inequality were most pronounced in the larger urban areas. Surprisingly, though, in the last decade, employment grew in urban areas without an increase in local inequality. In contrast, peripheral and sparsely populated regions experienced a rise in inequality without significant employment growth. This suggests that the link between economic development and inequality is not universal but dependent on, among others, the nature of structural change in the economy and institutional preconditions.