Periodic Reporting for period 1 - ESSPIN (Economic, Social and Spatial Inequalities in Europe in the Era of Global Mega-trends (ESSPIN))
Okres sprawozdawczy: 2022-10-01 do 2023-12-31
The goal of this research proposal is to re-examine the nexus of social, economic and spatial inequalities in the EU, the various typologies and the arrangements and mix of policies addressing them, in the light of emerging and highly interacting mega-trends and challenges, threatening to increase pressures and make policy choices even more difficult. As new and older drivers of change are projected to create a rather unfavourable environment for balanced growth and socio-spatial resilience, this research will focus on the analysis of policy responses, aiming to make them more pro- active, inclusive and effective. The novel contribution of the proposed research project lies on a holistic and integrated approach that relates in an interactive way drivers to outcomes and levels of aggregation. The aim is to detect, model and map the interdependence among drivers of inequality and outcomes in a multi-level, poly parametric context with specific tailor-made policy recommendations.
The project has produced research findings with critical policy implication elements for the future of the EU policy agenda.
The results of the analysis indicate that the size, strength, orientation and quality of public policies need to be re-examined in order to reduce inequalities in the EU. They indicate that institutional quality is a precondition for an effective use of public investment and Structural Funds, as countries with more transparent, democratic and inclusive governance may provide more opportunities to less advanced regions to converge towards the national average. In general, stronger public investment programs are found to be critical for peripheral regions, as they play an important role in the formation of fixed capital and the catching up of these regions in terms of skills, organizational capacities, investment, as well as social and productive infrastructure.
Some of the findings indicate that a certain level of income redistribution is necessary in order to reduce inequality and promote growth. Taxing profits in a more progressive way in order to account for the incomes of the super-rich may have a positive effect on growth, through the deepening of the tax base that will allow for improvement in public education and health. The evidence suggests that tax interventions targeting extreme wealth can be an effective policy option that will promote growth and at the same time reduce inequalities.
Furthermore, a measurable way to differentiate between growth generating inequality and growth damaging inequality was identified. A new composite index of inequality was created which redefined inequality under a holistic approach. The project has completed in its first year over 11 scientific reports including extensive policy relevant sections and is currently working on over 50 scientific reports following both quantitative and qualitative methods covering the entire EU at multiple spatial scales. In addition, the project has created a database containing data on actual and perceived inequalities of different forms and perspectives at different geographical levels globally which allows the study of the evolution of inequality and the depiction of its trends.
The project consortium is very active in disseminating the project's results by participating in over 35 international and national conferences presenting the results of the project to date.
The results of the analysis indicate that the size, strength, orientation and quality of public policies need to be re-examined in order to reduce inequalities in the EU. They indicate that institutional quality is a precondition for an effective use of public investment and Structural Funds, as countries with more transparent, democratic and inclusive governance may provide more opportunities to less advanced regions to converge towards the national average. In general, stronger public investment programs are found to be critical for peripheral regions, as they play an important role in the formation of fixed capital and the catching up of these regions in terms of skills, organizational capacities, investment, as well as social and productive infrastructure.
Some of the findings indicate that a certain level of income redistribution is necessary in order to reduce inequality and promote growth. Taxing profits in a more progressive way in order to account for the incomes of the super-rich may have a positive effect on growth, through the deepening of the tax base that will allow for improvement in public education and health. The evidence suggests that tax interventions targeting extreme wealth can be an effective policy option that will promote growth and at the same time reduce inequalities.
Furthermore, a measurable way to differentiate between growth generating inequality and growth damaging inequality was identified. A new composite index of inequality was created which redefined inequality under a holistic approach. The project has completed in its first year over 11 scientific reports including extensive policy relevant sections and is currently working on over 50 scientific reports following both quantitative and qualitative methods covering the entire EU at multiple spatial scales. In addition, the project has created a database containing data on actual and perceived inequalities of different forms and perspectives at different geographical levels globally which allows the study of the evolution of inequality and the depiction of its trends.
The project consortium is very active in disseminating the project's results by participating in over 35 international and national conferences presenting the results of the project to date.
The ESSPIN project has provided valuable insight regarding the evolution of inequalities and has stressed the importance of an EU or international taxation so that tax policies can be effective in tackling inequalities. For the first time, the point after which growth generating income diversity becomes growth damaging inequality was identified based on solely economic terms. Novel indices of multiple deprivation have been created, regarding the incidence, intensity and inequality of material and social deprivation both across the entire population as well as across the poor population. The Composite Index of inequality (W_CINI) incorporates measurements for economic, spatial, treatment, membership, opportunities and environmental inequalities. The empirical application of the framework was data-driven in total 18 variables were selected to evaluate 76 countries worldwide in the 2000-2022 period. The analysis revealed that there is a general positive trend in the relationship between GDP per capita and the value of weighted composite index (W_CINI). However, for the lagging countries the increase in their GDP figures may augment inequalities. Therefore, improvements in income should be followed by other structural transformations for any effect of policies against inequalities to start being visible.