Measuring Spatial Inequality In The Uk
What We Know And What We Should Know
Overview
While some common indicators such as GDP per head, unemployment rate and employment rate are widely accepted regional performance measures, the precise methodology used to analyse them is often subject to controversial debate. A recent debate was sparked by the publication of a GDP per person graph (Figure 1a) in The Economist which highlights the shocking regional inequalities in Britain compared to other OECD countries. One of the main criticisms of the method is its use of residential population as the denominator, as the functional labour market area of the richest west London region is much bigger than its domicile residents and thus distorts the real situation. After experimenting with different methods, different analyses are provided including one for GDP per employed person (Figure 1b). Regardless of what method is used, what matters is that Britain is still ranked the 1st-7th most regionally unequal among the 34 OECD countries and the situation is growing worse.
