<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The main goal of this paper is to empirically examine the effects of related and unrelated variety on per employee income in Polish NUTS 2 regions, and the resulting income inequality. The study is based on regional panel data for the 2003–2018 period using the GMM estimator system. The positive effect of related variety on per employee income and the negative effect of unrelated variety on per employee income are reported. Our simulation results show that regional income inequality could be reduced by promoting related variety in eastern regions of the country.</p>
</abstract>

The main goal of this paper is to empirically examine the effects of related and unrelated variety on per employee income in Polish NUTS 2 regions, and the resulting income inequality. The study is based on regional panel data for the 2003–2018 period using the GMM estimator system. The positive effect of related variety on per employee income and the negative effect of unrelated variety on per employee income are reported. Our simulation results show that regional income inequality could be reduced by promoting related variety in eastern regions of the country.

<bold>Related versus unrelated variety</bold> and per employee income regional disparities: A case of Polish regions

Miscellanea Geographica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

 and per employee income regional disparities: A case of Polish regions

The main goal of this paper is to empirically examine the effects of related and unrelated variety on per employee income in Polish NUTS 2 regions, and the...

Mean	SD	Max	Min		lny_it	lnk_it	RV_it	UV_it	Urban_it	Open_it
4.70	0.20	5.21	4.18	lny_it	1.00
5.36	0.20	5.82	4.95	lnk_it	0.86^***	1.00
1.01	0.23	1.52	0.67	RV_it	0.60^***	0.38^***	1.00
1.58	0.01	1.58	1.53	UV_it	−0.29^***	−0.28^***	−0.19^***	1.00
0.59	0.09	0.40	0.79	Urban_it	0.60^***	0.43^***	0.63^***	−0.01	1.00
0.58	0.28	1.58	0.12	Open_it	0.58^***	0.37^***	0.39^***	−0.01	0.48^***	1.00

	Poland – all regions			Western Poland 11 regions
	(1)	(2)	(3)	(1)	(2)	(3)
lny_it-1	0.7623^*** (0.0669)	0.7187^*** (0.0603)	0.7191^*** (0.0579)	0.6802^*** (0.0965)	0.7189^*** (0.1017)	0.7008^*** (0.1216)
lnk_it	0.1487^*** (0.0374)	0.1528^*** (0.0375)	0.1497^*** (0.0361)	0.1783^** (0.0673)	0.1509^* (0.0728)	0.1512^* (0.0746)
Urban	0.0891^** (0.0405)	0.1554^*** (0.0423)	0.1001^** (0.0460)	0.0132 (0.0458)	0.1000 (0.0934)	0.0069 (0.0442)
RV_it	0.04625^** (0.0203)	-	0.0436^* (0.0231)	0.0558^** (0.0239)	-	0.0518^* (0.0284)
UV_it	-	−0.6956^** (0.3237)	−0.5499^* (0.3141)	-	−0.9337^* (0.4366)	−0.8277^* (0.4044)
open_it	0.0330^* (0.0183)	0.0415^* (0.0209)	0.0375^** (0.0175)	0.0215 (0.0230)	0.0101 (0.0184)	0.0169 (0.0237)
Const.	0.3650^** (0.1279)	1.5063^** (0.5424)	1.2822^** (0.5013)	0.5043^** (0.1484)	1.9528^** (0.8433)	1.8678^** (0.7745)
AR(1) test	−2.75 [0.006]	−2.73 [0.006]	−2.75 [0.006]	−2.42 [0.016]	−2.33 [0.020]	−2.40 [0.016]
AR(2) test	−1.00 [0.316]	−0.94 [0.349]	−0.99 [0.321]	−1.07 [0.284]	−0.99 [0.320]	−1.05 [0.293]
Hansen test	0.04 [0.839]	0.03 [0.869]	0.04 [0.843]	0.27 [0.605]	1.55 [0.213]	1.70 [0.192]
F test	641.22 [0.000]	713.13 [0.000]	888.46 [0.000]	770.72 [0.000]	828.53 [0.000]	520.39 [0.000]
Number of observations	240	240	240	165	165	165
Number of instruments	7	7	8	7	7	8

Related versus unrelated variety and per employee income regional disparities: A case of Polish regions

Published Online: Oct 31, 2022

Page range: 178 - 184

Received: Jan 25, 2021

Accepted: Oct 09, 2022

DOI: https://doi.org/10.2478/mgrsd-2022-0017

Keywords
Related variety, unrelated variety, knowledge spillovers, per employee income, externalities

© 2022 Andrzej Cieślik et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Figure 1

Figure 2

Figure 3

Correlation matrix and descriptive statistics

Estimation results – Dependent variable: lnyit

Related versus unrelated variety and per employee income regional disparities: A case of Polish regions

Published Online: Oct 31, 2022

Page range: 178 - 184

Received: Jan 25, 2021

Accepted: Oct 09, 2022

DOI: https://doi.org/10.2478/mgrsd-2022-0017

KeywordsRelated variety, unrelated variety, knowledge spillovers, per employee income, externalities

© 2022 Andrzej Cieślik et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Figure 1

Figure 2

Figure 3

Correlation matrix and descriptive statistics

Estimation results – Dependent variable: lnyit

Keywords
Related variety, unrelated variety, knowledge spillovers, per employee income, externalities