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Regional Diversification and Inequality between and within Regions

Ron Boschma
CESifo, Munich, 2022

EconPol Forum 23 (5), 29-32
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  • 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

 

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