Patterns of inequality in private funding of culture across the UK

Abstract

By calculating an additively decomposable inequality measure following the lines of Shorrocks (1980; see Econometrica, 48(3)) we are able to evaluate regional disparities in private funding of cultural enterprises in the UK in a novel way. The country-wide index of inequality separates funding differences across regions from disparities within regions. Using data on private investment in UK cultural organisations, we consider three datasets: the first includes 139 organisations between 1993 and 2005; the second includes 573 organisations between 2002 and 2005; the third includes 898 organisations between 2005 and 2006. Differences among the 12 UK regions account for between a quarter and a third of overall funding inequalities. The largest contributor to funding inequality of cultural institutions in the UK is the degree of heterogeneity among cultural organisations within each region. We find that successful private fundraising is not significantly associated with the region where the organisation operates or with the particular cultural expression object of its activity. These are significant findings for cultural policymakers working on addressing issues of regional concentration of culture and diversifying sources of funding for the sector.