Regional Diversification and Inequality between and within Regions

Ron Boschma

EconPol Forum 23 (5), 29-32

  • The relationship between diversification and wage inequality in regions is still poorly understood
  • Related diversification is crucial for economic growth of regions
  • Related diversification in more complex industries tends to increase wage inequality between regions
  • Related diversification in less complex industries tends to reduce wage inequality
  • It remains a policy challenge to combine smart and inclusive growth in regions