In this paper we examine the distribution of income inequality among the regions of the European Union from 1993 to 2000. The results obtained show that the levels of inequality vary considerably between regions. Nevertheless, we have detected a high level of positive spatial dependence in the distribution under consideration. However, 57% of the regions considered registered no statistically significant variations in the degree of income dispersion over time, though there was a reduction in 40% of them. The empirical evidence presented indicates the existence of a process of regional convergence in terms of inequality during the period considered, mainly as a result of the evolution of regions whose initial levels of inequality were relatively high. Moreover, our analysis highlights the important roles played by the national component, activity, and unemployment rates, gross domestic product per capita, and the weight of the agricultural sector in total employment in accounting for differences in the degree of income dispersion across the European regions.
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