A1 Journal article (refereed)
Patterns of inter- and intra-regional differences in human capital and earnings : Evidence from Finland and Sweden 1987–2015 (2021)

Eliasson, K., Haapanen, M., & Westerlund, O. (2021). Patterns of inter- and intra-regional differences in human capital and earnings : Evidence from Finland and Sweden 1987–2015. Applied Geography, 135, Article 102539. https://doi.org/10.1016/j.apgeog.2021.102539

JYU authors or editors

Publication details

All authors or editors: Eliasson, Kent; Haapanen, Mika; Westerlund, Olle

Journal or series: Applied Geography

ISSN: 0143-6228

eISSN: 1873-7730

Publication year: 2021

Volume: 135

Article number: 102539

Publisher: Elsevier Ltd.

Publication country: United Kingdom

Publication language: English

DOI: https://doi.org/10.1016/j.apgeog.2021.102539

Publication open access: Openly available

Publication channel open access: Partially open access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/78238


In this paper, we examine the long-term patterns of geographical disparities in human capital and income in Finland and Sweden over the period 1987–2015. Using nationwide longitudinal population register data, we analyze disparities at different spatial scales, between and within functional labor market regions determined by observed travel-to-work patterns. Contrary to the findings from many other developed economies indicating inter-regional divergence in per capita income, we find indications of inter-regional convergence in per capita earnings among the functional labor market regions in both countries after 2000. However, small, and peripheral regions have not recovered from the macroeconomic shocks in the 1990s, in terms of per capita earnings. Our estimates indicate relatively small and statistically insignificant changes in the geographical dispersion of human capital at the inter-regional scale. At the intra-regional scale, the disparities in human capital and earnings between the core and hinterlands are relatively large and persistent, although some evidence of convergence is found for Finland. The largest intra-regional differences in human capital and earnings are found within the metropolitan labor markets.

Keywords: labour market; labour (workforce); labour supply; human capital; regional differences; earned income; regional economy

Free keywords: regional disparities; human capital; skill intensity; income; intra-regional; local labor market areas

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Ministry reporting: Yes

Reporting Year: 2021

JUFO rating: 2

Last updated on 2022-20-09 at 14:36