A Multidimensional Analysis of the EU Regional Inequalities

Abstract

This article illustrates the steps followed to construct a measure that accounts for multidimensional inequality across European regions in terms of human development. First, a multidimensional index to explore the between inequalities across regions has been produced. Referring to UNDP (Human development report. Technical notes, Oxford University Press, Oxford, 2018. http://hdr.undp.org/sites/default/files/hdr2018_technical_notes.pdf ) updated methodology and integrating it with the European Commission (2011, 2014) contributions, a Human Development Index has been calculated for 205 regions in the European Union, within the span of time from 2000 to 2011. These estimates have then been adapted to inequality, based on intra-regional distribution of selected variables following the UNDP methodology to calculate an Inequality-adjusted Human Development Index. This allowed to explore how the human development pattern changes when accounting for within inequalities, and to estimate the Loss in potential human development due to inequality in the society. The latter can serve as a measure for multidimensional inequality. Results show a generally increased level of human development achievements despite a widespread persistent level of inequalities in its distribution, as well as a spatial connotation of both dynamics.