Inequality and social capital in the EU regions: a multidimensional analysis

ABSTRACT This paper focuses on the interactions between social capital and production structure in their relation with regional inequality. Combining survey data with available regional databases for the EU-15, it provides a panel data analysis of multidimensional inequalities based on the idea that social capital is a fundamental factor determining its regional levels, along with the economic specialization of regions. Results confirm an inverse relation between inequality and social capital. At the same time, they highlight the positive impact of production clusters on the regional environment. Findings suggest that the joint effect of predictors is ambiguous, and may so be dependent on the different sorts of local specialization and social capital endowment