Foreign direct investment openness and income classes in Europe around the Great Recession

Figures & data

Table 1. Descriptive statistics.

		2007		2010		2013
Variable	Description	Average	S.D.	Average	S.D.	Average	S.D.
Income share (dependent variable)	Income perceived by an individual as proportion of total income of the corresponding country (multiplied by 10^4)	0.704	1.853	0.683	1.817	0.673	1.865
Woman_head	1 if head is a woman, 0 otherwise	0.317	0.465	0.333	0.471	0.336	0.472
Age_head	age of the household head	46.391	11.443	47.252	11.615	47.882	11.738
Supervisory_head	1 if head of household having a managerial position, 0 otherwise	0.269	0.443	0.279	0.448	0.273	0.445
Children (%)	proportion of children in the household	0.169	0.212	0.164	0.211	0.164	0.213
Old (%)	proportion of individuals older than 65 in the household	0.039	0.129	0.043	0.136	0.044	0.140
Chronic (%)	proportion of individuals with chronic illness or condition in the household	0.211	0.298	0.218	0.306	0.229	0.317
Loneparent	1 if lone parenthood, 0 otherwise	0.035	0.184	0.037	0.188	0.039	0.193
Tertiary education (%)	proportion of individuals with tertiary education among older than 25 years-old in the household	0.267	0.384	0.278	0.386	0.301	0.395
Work (%)	proportion of individuals working full or part-time (including employees and self-employed) among active members in the household	0.917	0.228	0.875	0.281	0.864	0.293
GDPpc	real GDP per capita expressed in euros of 2010 per inhabitant	25250	11179	24843	10657	25131	10938
FDI	investment in a foreign business enterprise (between 0 and 1, 1 = fully liberalised)	0.394	0.288	0.380	0.291	0.387	0.279
Lower Class	1 if lower class, 0 otherwise	0.189	0.391	0.212	0.409	0.221	0.415
Lower-middle Class	1 if lower-middle class, 0 otherwise	0.410	0.492	0.390	0.488	0.386	0.487
Upper-middle Class	1 if upper--middle class, 0 otherwise	0.301	0.459	0.298	0.457	0.293	0.455
Upper Class	1 if upper class, 0 otherwise	0.100	0.300	0.099	0.299	0.100	0.300

Note: S.D.: standard deviation.

Source: authors’ computation, based on EU-SILC (2008, 2011, 2014) data.

Table 2. Estimation results of income share for 2007 (wave 2008).

	Model 1	Model 2	Model 3	Model 4
Woman_head	−0.041 [0.056]	−0.053 [0.048]	−0.043 [0.052]	−0.042 [0.046]
Age_head	−0.001 [0.006]	0.001 [0.005]	−0.000 [0.006]	0.001 [0.005]
Supervisory_head	0.236** [0.117]	0.269** [0.113]	0.227** [0.111]	0.234** [0.105]
Children (%)	−0.497 [0.480]	−0.452 [0.379]	−0.536 [0.481]	−0.515 [0.457]
Old (%)	−0.299* [0.165]	−0.150 [0.121]	−0.332* [0.170]	−0.288* [0.174]
Chronic (%)	−0.086 [0.056]	−0.051 [0.054]	−0.108** [0.043]	−0.089** [0.044]
Loneparent	0.190 [0.293]	0.109 [0.223]	0.176 [0.285]	0.155 [0.271]
Tertiary education (%)	0.406 [0.262]	0.339 [0.212]	0.447 [0.404]	0.338 [0.306]
Work (%)	−0.182 [0.240]	−0.112 [0.189]	−0.167 [0.212]	−0.140 [0.195]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	13.312*** [4.887]	25.748** [10.052]	11.410*** [4.318]	11.608*** [4.363]
Lower Class	−6.754*** [2.140]	−6.735*** [1.901]	−6.674*** [2.102]	−6.800*** [1.924]
Lower-middle Class	−5.292*** [1.659]	−5.336*** [1.512]	−5.260*** [1.646]	−5.331*** [1.475]
Upper-middle Class	−3.672*** [1.139]	−3.699*** [1.092]	−3.662*** [1.145]	−3.681*** [1.028]
FDI*Lower Class		−19.315** [7.979]
FDI*Lower-middle Class		−15.131** [6.318]
FDI*Upper-middle Class		−9.021** [4.121]
FDI* Tertiary education			8.056*** [2.922]	17.528*** [6.795]
FDI* Tertiary education *Lower Class				−24.170*** [8.984]
FDI* Tertiary education *Lower-middle Class				−17.880*** [6.601]
FDI* Tertiary education *Upper-middle Class				−10.026** [4.533]
Constant	6.664** [3.118]	6.425** [3.232]	6.603** [3.104]	6.596** [3.133]
Observations	87,315	87,315	87,315	87,315
Number of groups	27	27	27	27
Var(intercept)	27.303	27.840	27.334	27.601
Var(residual)	13.556	10.648	12.839	11.901
Variance Partition Coefficient (VPC)	0.668	0.723	0.680	0.699
Log likelihood	−7422	−7100	−7349	−7248

*** Significant at 1% level; ** Significant at 5% level; * Significant at 10% level.

Source: authors’ computation, based on EU-SILC (2008) data.

Table 3. Estimation results of income share for 2010 (wave 2011).

	Model 1	Model 2	Model 3	Model 4
Woman_head	−0.074* [0.044]	−0.073* [0.041]	−0.072 [0.044]	−0.066 [0.043]
Age_head	−0.005 [0.005]	−0.003 [0.003]	−0.005 [0.005]	−0.004 [0.004]
Supervisory_head	0.279* [0.148]	0.309** [0.143]	0.277* [0.145]	0.288** [0.144]
Children (%)	−0.568 [0.458]	−0.529 [0.376]	−0.566 [0.459]	−0.548 [0.431]
Old (%)	−0.018 [0.152]	0.042 [0.111]	−0.016 [0.152]	−0.014 [0.146]
Chronic (%)	−0.050 [0.080]	−0.089 [0.081]	−0.038 [0.085]	−0.047 [0.079]
Loneparent	0.280 [0.273]	0.208 [0.195]	0.251 [0.254]	0.261 [0.254]
Tertiary education (%)	0.308* [0.158]	0.283* [0.159]	0.332 [0.302]	0.276 [0.231]
Work (%)	−0.223 [0.265]	−0.158 [0.242]	−0.207 [0.256]	−0.191 [0.251]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	11.402** [4.932]	21.170** [9.665]	10.055** [4.402]	10.208** [4.448]
Lower Class	−6.497*** [2.027]	−6.412*** [1.836]	−6.458*** [2.001]	−6.444*** [1.882]
Lower-middle Class	−5.074*** [1.573]	−4.984*** [1.405]	−5.035*** [1.548]	−5.013*** [1.434]
Upper-middle Class	−3.449*** [1.049]	−3.363*** [0.943]	−3.429*** [1.033]	−3.382*** [0.939]
FDI*Lower Class		−14.714** [7.293]
FDI*Lower-middle Class		−11.846** [5.978]
FDI*Upper-middle Class		−7.324* [3.842]
FDI* Tertiary education			5.483** [2.561]	12.253** [5.646]
FDI* Tertiary education *Lower Class				−16.999*** [6.052]
FDI* Tertiary education *Lower-middle Class				−12.758** [5.525]
FDI* Tertiary education *Upper-middle Class				−7.499** [3.759]
Constant	5.862* [3.005]	5.589* [2.902]	5.772* [2.964]	5.707* [2.929]
Observations	91,427	91,427	91,427	91,427
Number of groups	27	27	27	27
Var(intercept)	30.489	30.594	30.592	30.712
Var(residual)	12.708	11.146	12.392	11.936
Variance Partition Coefficient (VPC)	0.706	0.733	0.712	0.720
Log likelihood	−7337	−7162	−7304	−7253

*** Significant at 1% level; ** Significant at 5% level; * Significant at 10% level.

Source: authors’ computation, based on EU-SILC (2011) data.

Table 4. Estimation results of income share for 2013 (wave 2014).

	Model 1	Model 2	Model 3	Model 4
Woman_head	0.037 [0.041]	0.042 [0.041]	0.033 [0.041]	0.038 [0.043]
Age_head	−0.004 [0.005]	−0.003 [0.005]	−0.003 [0.005]	−0.003 [0.005]
Supervisory_head	0.349* [0.189]	0.387** [0.184]	0.347* [0.183]	0.356** [0.179]
Children (%)	−0.487 [0.377]	−0.422 [0.313]	−0.478 [0.379]	−0.463 [0.363]
Old (%)	−0.077 [0.199]	−0.081 [0.173]	−0.09 [0.202]	−0.095 [0.184]
Chronic (%)	−0.074 [0.061]	−0.132* [0.077]	−0.09 [0.060]	−0.099 [0.066]
Loneparent	0.074 [0.146]	−0.041 [0.091]	0.054 [0.139]	0.039 [0.128]
Tertiary education (%)	0.315* [0.179]	0.291 [0.181]	0.406 [0.329]	0.236 [0.238]
Work (%)	−0.477 [0.322]	−0.418 [0.296]	−0.461 [0.311]	−0.469 [0.308]
GDPpc	0 [0.000]	0 [0.000]	0 [0.000]	0 [0.000]
FDI	12.735* [6.898]	25.065* [14.070]	10.899* [5.871]	11.135* [5.974]
Lower Class	−7.031*** [2.110]	−6.751*** [1.837]	−6.911*** [2.046]	−6.961*** [1.917]
Lower-middle Class	−5.563*** [1.654]	−5.311*** [1.416]	−5.452*** [1.594]	−5.476*** [1.467]
Upper-middle Class	−3.977*** [1.195]	−3.711*** [0.995]	−3.875*** [1.147]	−3.829*** [1.022]
FDI*Lower Class		−18.058* [10.859]
FDI*Lower-middle Class		−14.935* [9.036]
FDI*Upper-middle Class		−9.91 [6.204]
FDI* Tertiary education			6.885 [4.289]	15.766* [9.455]
FDI* Tertiary education *Lower Class				−22.065** [11.111]
FDI* Tertiary education *Lower-middle Class				−16.547* [9.289]
FDI* Tertiary education *Upper-middle Class				−10.431 [6.506]
Constant	6.535** [2.998]	6.184** [2.930]	6.402** [2.932]	6.409** [2.943]
Observations	90681	90681	90681	90681
Number of groups	27	27	27	27
Var(intercept)	28.767	29.106	28.935	29.016
Var(residual)	15.174	13.546	14.816	14.237
Variance Partition Coefficient (VPC)	0.655	0.682	0.661	0.671
Log likelihood	−7573	−7422	−7542	−7488

*** Significant at 1% level; ** Significant at 5% level; * Significant at 10% level.

Source: authors’ computation, based on EU-SILC (2014) data.

Table A1. Observations by country and wave.

Country	2008	2011	2014
Austria	2,604	2,837	2,662
Belgium	2,877	2,692	2,692
Bulgaria	2,114	3,359	2,432
Cyprus	1,504	1,914	2,130
Czechia	5,181	4,011	3,555
Germany	5,297	6,742	6,315
Denmark	2,158	2,120	2,372
Estonia	2,667	2,690	3,056
Greece	2,039	1,746	2,698
Sprain	6,050	6,014	5,646
Finland	3,778	3,278	2,883
France	4,444	4,947	4,869
Hungary	3,906	5,648	4,578
Ireland	1,887	1,678	2,168
Italy	7,945	7,426	7,706
Lithuania	2,472	2,655	2,605
Luxembourg	2,049	2,868	2,114
Latvia	2,720	3,407	3,039
Malta	1,320	1,667	1,857
Netherlands	3,013	3,007	2,971
Norway	1,891	1,538	2,970
Poland	5,603	5,311	5,420
Portugal	1,864	2,346	3,123
Romania	2,811	2,789	2,779
Sweden	3,295	2,890	2,323
Slovenia	2,820	2,927	2,769
Slovakia	3,006	2,920	2,949
	87,315	91,427	90,681

Source: EU-SILC (2008, 2011, 2014).

Table A2. Estimation results of income share for 2008 (wave 2009).

2008	Model 1	Model 2	Model 3	Model 4
Woman_head	−0.016 [0.063]	−0.036 [0.050]	−0.018 [0.062]	−0.008 [0.061]
Age_head	−0.002 [0.004]	−0.000 [0.003]	−0.001 [0.004]	−0.000 [0.004]
Supervisory_head	0.206* [0.120]	0.240** [0.115]	0.195* [0.108]	0.222** [0.113]
Children (%)	−0.673 [0.486]	−0.646 [0.395]	−0.668 [0.485]	−0.669 [0.469]
Old (%)	−0.234 [0.164]	−0.092 [0.155]	−0.254 [0.187]	−0.243 [0.199]
Chronic (%)	−0.179*** [0.065]	−0.131** [0.059]	−0.177*** [0.061]	−0.136*** [0.052]
Loneparent	0.046 [0.179]	0.013 [0.148]	0.050 [0.169]	0.050 [0.166]
Tertiary education (%)	0.258 [0.251]	0.235 [0.196]	0.320 [0.412]	0.251 [0.320]
Work (%)	−0.177 [0.251]	−0.074 [0.176]	−0.165 [0.220]	−0.143 [0.205]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	13.169*** [4.856]	26.288*** [10.169]	11.325*** [4.308]	11.527*** [4.351]
Lower Class	−7.025*** [2.242]	−6.908*** [1.896]	−6.976*** [2.205]	−7.029*** [1.989]
Lower-middle Class	−5.492*** [1.749]	−5.468*** [1.525]	−5.473*** [1.734]	−5.519*** [1.550]
Upper-middle Class	−3.892*** [1.230]	−3.848*** [1.099]	−3.900*** [1.227]	−3.904*** [1.093]
FDI*Lower Class		−20.301** [8.122]
FDI*Lower-middle Class		−15.784** [6.467]
FDI*Upper-middle Class		−9.849** [4.246]
FDI* Tertiary education			7.850*** [2.864]	17.289*** [6.622]
FDI* Tertiary education *Lower Class				−25.094*** [8.711]
FDI* Tertiary education *Lower-middle Class				−17.943*** [6.420]
FDI* Tertiary education *Upper-middle Class				−10.180** [4.350]
Constant	7.026** [3.199]	6.730** [3.256]	6.949** [3.193]	6.942** [3.207]
Observations	89,151	89,151	89,151	89,151
Number of groups	27	27	27	27
Log likelihood	−7602	−7302	−7542	−7453

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Table A3. Estimation results of income share for 2009 (wave 2010).

2009	Model 1	Model 2	Model 3	Model 4
Woman_head	0.001 [0.055]	−0.001 [0.049]	−0.005 [0.053]	0.005 [0.054]
Age_head	−0.000 [0.004]	0.002 [0.003]	−0.000 [0.004]	0.001 [0.004]
Supervisory_head	0.399* [0.219]	0.424** [0.215]	0.400* [0.215]	0.412* [0.219]
Children (%)	−0.654 [0.562]	−0.617 [0.468]	−0.638 [0.557]	−0.663 [0.539]
Old (%)	−0.237 [0.244]	−0.124 [0.184]	−0.250 [0.258]	−0.213 [0.247]
Chronic (%)	−0.037 [0.111]	−0.096 [0.114]	−0.031 [0.115]	−0.041 [0.107]
Loneparent	0.243 [0.314]	0.193 [0.242]	0.202 [0.292]	0.240 [0.300]
Tertiary education (%)	0.292 [0.183]	0.246 [0.177]	0.332 [0.333]	0.224 [0.266]
Work (%)	−0.198 [0.252]	−0.166 [0.222]	−0.177 [0.239]	−0.173 [0.234]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	11.375** [4.879]	21.960** [10.124]	9.958** [4.334]	10.126** [4.386]
Lower Class	−7.273*** [2.301]	−7.197*** [2.080]	−7.202*** [2.260]	−7.229*** [2.143]
Lower-middle Class	−5.699*** [1.786]	−5.613*** [1.594]	−5.630*** [1.748]	−5.636*** [1.631]
Upper-middle Class	−4.037*** [1.263]	−3.961*** [1.132]	−3.991*** [1.235]	−3.952*** [1.134]
FDI*Lower Class		−15.749** [7.992]
FDI*Lower-middle Class		−12.796** [6.526]
FDI*Upper-middle Class		−8.289* [4.414]
FDI* Tertiary education			5.967** [2.736]	13.097** [6.019]
FDI* Tertiary education *Lower Class				−17.737*** [6.706]
FDI* Tertiary education *Lower-middle Class				−13.847** [5.957]
FDI* Tertiary education *Upper-middle Class				−8.296** [4.179]
Constant	6.252** [3.110]	6.044** [3.041]	6.135** [3.058]	6.115** [3.035]
Observations	83,776	83,776	83,776	83,776
Number of groups	26	26	26	26
Log likelihood	−7455	−7310	−7427	−7385

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Table A4. Estimation results of income share for 2011 (wave 2012).

2011	Model 1	Model 2	Model 3	Model 4
Woman_head	−0.027 [0.035]	−0.035 [0.033]	−0.027 [0.036]	−0.036 [0.034]
Age_head	−0.003 [0.005]	−0.003 [0.004]	−0.003 [0.005]	−0.003 [0.005]
Supervisory_head	0.302* [0.161]	0.313** [0.149]	0.287* [0.149]	0.305** [0.155]
Children (%)	−0.613 [0.516]	−0.511 [0.395]	−0.601 [0.511]	−0.574 [0.475]
Old (%)	−0.151 [0.164]	−0.035 [0.108]	−0.147 [0.168]	−0.108 [0.142]
Chronic (%)	−0.111* [0.058]	−0.119** [0.057]	−0.104* [0.056]	−0.108* [0.057]
Loneparent	0.151 [0.208]	0.036 [0.121]	0.118 [0.184]	0.117 [0.187]
Tertiary education (%)	0.243 [0.151]	0.256* [0.150]	0.336 [0.279]	0.194 [0.227]
Work (%)	−0.197 [0.250]	−0.132 [0.239]	−0.177 [0.243]	−0.185 [0.242]
GDPpc	0 [0.000]	0 [0.000]	0 [0.000]	0 [0.000]
FDI	13.099* [7.125]	24.396* [14.207]	11.587* [6.351]	11.763* [6.422]
Lower Class	−6.686*** [2.066]	−6.447*** [1.859]	−6.606*** [2.028]	−6.662*** [1.954]
Lower-middle Class	−5.246*** [1.603]	−5.029*** [1.412]	−5.167*** [1.564]	−5.212*** [1.488]
Upper-middle Class	−3.645*** [1.108]	−3.423*** [0.971]	−3.575*** [1.080]	−3.552*** [1.004]
FDI*Lower Class		−16.945 [10.969]
FDI*Lower-middle Class		−13.83 [8.876]
FDI*Upper-middle Class		−8.508 [5.926]
FDI* Tertiary education			5.892* [3.540]	13.827 [8.588]
FDI* Tertiary education *Lower Class				−18.779* [10.142]
FDI* Tertiary education *Lower-middle Class				−14.831* [8.787]
FDI* Tertiary education *Upper-middle Class				−8.731 [5.987]
Constant	6.133** [2.935]	5.825** [2.878]	6.043** [2.893]	6.100** [2.939]
Observations	92598	92598	92598	92598
Number of groups	27	27	27	27
Log likelihood	−7549	−7416	−7526	−7489

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Table A5. Estimation results of income share for 2012 (wave 2013).

2012	Model 1	Model 2	Model 3	Model 4
Woman_head	−0.047 [0.042]	−0.061 [0.046]	−0.055 [0.044]	−0.051 [0.042]
Age_head	−0.002 [0.005]	−0.002 [0.004]	−0.002 [0.005]	−0.002 [0.004]
Supervisory_head	0.351** [0.169]	0.386** [0.162]	0.344** [0.163]	0.368** [0.166]
Children (%)	−0.507 [0.405]	−0.415 [0.298]	−0.482 [0.388]	−0.453 [0.365]
Old (%)	−0.141 [0.138]	−0.112 [0.128]	−0.148 [0.149]	−0.149 [0.150]
Chronic (%)	−0.128* [0.077]	−0.168** [0.077]	−0.130* [0.076]	−0.137* [0.072]
Loneparent	0.136 [0.207]	0.018 [0.119]	0.094 [0.178]	0.097 [0.180]
Tertiary education (%)	0.310** [0.139]	0.295** [0.144]	0.424 [0.297]	0.239 [0.208]
Work (%)	−0.265 [0.256]	−0.213 [0.244]	−0.244 [0.245]	−0.261 [0.246]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	12.787* [7.002]	23.829* [14.039]	11.049* [6.038]	11.248* [6.126]
Lower Class	−6.839*** [2.097]	−6.566*** [1.881]	−6.706*** [2.034]	−6.780*** [1.969]
Lower-middle Class	−5.402*** [1.633]	−5.154*** [1.454]	−5.281*** [1.578]	−5.323*** [1.513]
Upper-middle Class	−3.829*** [1.151]	−3.572*** [1.012]	−3.711*** [1.107]	−3.679*** [1.040]
FDI*Lower Class		−16.816 [10.802]
FDI*Lower-middle Class		−13.414 [8.839]
FDI*Upper-middle Class		−8.312 [5.941]
FDI* Tertiary education			6.714 [4.254]	14.301 [9.330]
FDI* Tertiary education *Lower Class				−18.843* [10.105]
FDI* Tertiary education *Lower-middle Class				−14.384 [8.961]
FDI* Tertiary education *Upper-middle Class				−8.586 [6.411]
Constant	6.193** [2.881]	5.861** [2.829]	6.066** [2.813]	6.100** [2.854]
Observations	88,709	88,709	88,709	88,709
Number of groups	27	27	27	27
Log likelihood	−7600	−7472	−7572	−7534

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Table A7. Distribution of individuals living in highly educated households by income class and year.

country	2007				2010				2013
	LC	LMC	UMC	UC	LC	LMC	UMC	UC	LC	LMC	UMC	UC
Austria	17.25	24.41	36.14	22.20	13.05	24.97	41.63	20.35	9.61	33.55	37.52	19.32
Belgium	7.07	31.39	48.61	12.94	8.40	31.79	45.32	14.49	8.36	28.94	50.60	12.11
Bulgaria	3.43	31.23	33.36	31.98	3.86	18.33	33.21	44.60	3.55	20.72	36.26	39.48
Cyprus	5.05	20.68	44.06	30.22	6.51	25.92	37.64	29.93	6.17	25.95	35.33	32.55
Czechia	2.96	26.97	46.34	23.72	3.26	25.11	40.93	30.70	3.93	27.30	48.67	20.10
Germany	10.54	30.84	41.34	17.28	10.24	28.73	42.95	18.08	9.11	28.21	40.61	22.08
Denmark	7.44	40.62	42.53	9.42	6.96	32.89	48.94	11.20	9.45	34.41	43.54	12.60
Estonia	6.68	31.91	37.13	24.29	9.43	23.40	39.69	27.48	11.73	21.48	31.13	35.66
Greece	4.87	17.15	45.83	32.15	6.60	18.36	47.92	27.12	8.00	20.47	42.23	29.30
Sprain	7.35	17.46	39.06	36.13	6.64	17.62	37.56	38.18	11.39	17.75	37.89	32.98
Finland	4.20	32.17	44.19	19.44	5.30	33.47	45.97	15.26	8.03	36.72	41.79	13.47
France	5.51	31.59	44.66	18.24	8.07	34.25	38.21	19.47	6.69	37.97	36.76	18.58
Hungary	4.65	24.94	43.77	26.63	4.02	20.01	38.39	37.58	5.54	25.02	43.65	25.79
Ireland	7.12	19.33	45.58	27.97	6.50	23.71	41.15	28.64	6.54	30.36	35.85	27.25
Italy	5.57	17.82	41.19	35.41	8.52	16.72	41.89	32.87	7.30	24.88	38.18	29.65
Lithuania	9.62	19.34	27.48	43.55	9.95	15.42	33.68	40.95	5.28	15.57	40.29	38.87
Luxembourg	6.67	23.54	46.19	23.60	5.65	23.46	49.20	21.69	6.87	23.49	47.98	21.66
Latvia	6.75	18.75	33.17	41.33	5.39	17.79	38.12	38.71	8.36	19.30	33.11	39.23
Malta	1.38	20.00	49.17	29.44	0.67	18.97	38.13	42.23	1.54	13.94	40.54	43.98
Netherlands	9.28	35.08	41.28	14.36	7.55	36.60	40.23	15.63	5.41	33.83	44.72	16.04
Norway	7.07	40.84	42.82	9.26	8.14	43.73	38.74	9.40	6.84	47.29	38.43	7.43
Poland	4.23	13.51	37.90	44.37	4.16	15.10	40.38	40.37	3.98	18.32	39.39	38.32
Portugal	1.16	6.78	11.81	80.25	1.79	10.28	21.39	66.53	4.34	9.49	31.85	54.32
Romania	0.13	3.75	19.99	76.14	1.42	9.98	38.64	49.96	0.90	8.76	34.31	56.03
Sweden	8.75	37.71	41.72	11.82	12.55	37.26	40.09	10.10	9.17	37.21	40.30	13.32
Slovenia	3.63	15.73	54.60	26.04	3.89	21.63	53.48	21.00	2.92	25.25	50.74	21.10
Slovakia	3.71	31.28	46.19	18.82	4.25	27.81	43.64	24.30	3.76	34.50	43.68	18.07

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Note: highly educated households are those in which more than 50% of members older than 25 have tertiary education.

Source: Authors’ computation, based on EU-SILC (2008, 2011, 2014).

Table A6. Percentage of individuals living in highly educated households by income class and year.

country	2007				2010				2013
	LC	LMC	UMC	UC	LC	LMC	UMC	UC	LC	LMC	UMC	UC
Austria	10.63	6.43	13.58	31.26	7.65	6.67	16.40	33.11	9.75	14.58	25.17	48.64
Belgium	11.40	21.63	40.64	61.01	13.10	22.99	43.91	68.30	14.99	23.99	48.20	73.82
Bulgaria	1.64	11.32	13.57	31.56	2.33	7.81	17.89	50.88	2.50	10.00	24.23	52.19
Cyprus	6.64	11.58	35.96	68.89	7.83	14.25	34.68	63.08	6.44	17.89	36.06	63.24
Czechia	1.53	4.84	13.55	35.09	2.07	5.17	14.96	43.53	2.86	7.13	22.93	43.93
Germany	21.49	22.75	40.34	56.05	12.41	18.98	35.01	55.68	10.39	17.09	30.92	55.23
Denmark	23.14	19.58	29.52	52.97	19.27	19.26	36.33	49.36	27.14	23.28	36.93	56.47
Estonia	8.15	18.71	29.41	49.01	11.40	17.43	35.50	56.33	15.61	18.65	29.62	52.90
Greece	4.78	8.93	27.14	49.23	6.38	12.60	33.58	57.69	6.66	16.33	33.23	56.06
Sprain	6.52	10.09	26.71	59.07	5.40	10.95	26.01	55.13	8.58	13.57	31.69	57.65
Finland	9.78	19.64	35.96	67.42	14.48	25.18	41.47	72.23	17.02	29.59	45.59	74.91
France	6.45	13.63	35.16	49.55	8.52	16.69	31.82	50.47	8.35	20.62	35.51	61.64
Hungary	2.66	6.13	19.64	46.87	2.17	6.78	18.46	53.76	3.37	10.52	28.93	53.10
Ireland	10.56	11.70	31.60	60.34	10.65	19.23	39.86	72.80	11.53	28.08	45.93	81.68
Italy	1.95	3.74	9.87	31.46	3.24	3.82	11.14	30.46	3.72	8.37	15.10	39.35
Lithuania	9.80	11.46	20.69	59.90	8.39	11.53	27.90	61.52	6.66	12.28	32.70	62.38
Luxembourg	6.26	12.50	37.20	63.40	4.48	12.31	33.66	61.35	5.79	13.70	39.68	68.63
Latvia	3.94	8.90	16.85	40.46	3.54	10.14	23.20	44.01	7.00	11.34	22.84	48.85
Malta	0.60	3.60	11.32	23.18	0.31	3.90	9.71	35.39	0.95	3.75	15.75	47.78
Netherlands	15.28	17.71	34.19	52.87	12.71	20.95	38.08	59.53	10.24	21.81	44.55	61.02
Norway	18.81	19.87	32.36	47.23	22.18	24.56	37.58	53.36	28.38	35.87	44.95	61.82
Poland	2.33	4.34	16.04	41.29	2.45	5.49	19.33	46.08	2.74	7.96	22.22	48.51
Portugal	0.36	1.21	3.40	36.52	0.73	2.39	7.22	40.67	2.11	2.92	14.82	46.22
Romania	0.08	1.16	6.73	43.18	1.09	4.25	18.36	46.31	0.72	3.88	15.69	50.34
Sweden	15.25	17.26	25.21	48.18	23.46	21.92	28.58	41.83	16.69	24.13	29.15	53.32
Slovenia	3.03	4.92	28.47	68.92	4.25	7.94	30.95	63.28	3.21	11.62	38.43	72.79
Slovakia	2.31	6.26	15.59	39.45	2.73	7.95	17.46	42.47	2.74	10.25	19.18	42.02

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Note: highly educated households are those in which more than 50% of members older than 25 have tertiary education.

Source: Authors’ computation, based on EU-SILC (2008, 2011, 2014).

Table A8. Estimation results of income share for Model 4 for years 2007, 2010 and 2013 (wave 2008, 2011 and 2014), defining 3 income classes with thresholds 20^th and 80^th percentile.

	2007	2010	2013
Woman_head	−0.036 [0.051]	−0.098* [0.052]	0.003 [0.042]
Age_head	0.002 [0.005]	−0.003 [0.004]	−0.001 [0.005]
Supervisory_head	0.383*** [0.135]	0.424** [0.178]	0.494** [0.210]
Children (%)	−0.780 [0.554]	−0.829 [0.530]	−0.758* [0.421]
Old (%)	−0.397* [0.206]	−0.029 [0.153]	−0.119 [0.203]
Chronic (%)	−0.144*** [0.048]	−0.091 [0.071]	−0.148** [0.071]
Loneparent	0.030 [0.247]	0.152 [0.235]	−0.035 [0.116]
Tertiary education (%)	0.744** [0.312]	0.667** [0.265]	0.701** [0.295]
Work (%)	−0.001 [0.230]	0.028 [0.194]	−0.272 [0.256]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	11.561*** [4.368]	10.090** [4.407]	11.018* [5.926]
Lower Class	−4.724*** [1.357]	−4.580*** [1.361]	−4.850*** [1.410]
Middle Class	−2.968*** [0.819]	−2.874*** [0.855]	−3.113*** [0.878]
FDI*Lower Class	14.196*** [5.034]	9.876** [4.303]	13.094* [7.393]
FDI*Middle Class	−21.994*** [8.463]	−15.298*** [4.935]	−19.783** [9.396]
FDI* Tertiary education	14.196*** [5.034]	9.876** [4.303]	13.094* [7.393]
FDI* Tertiary education*Lower Class	−21.994*** [8.463]	−15.298*** [4.935]	−19.783** [9.396]
FDI* Tertiary education*Middle Class	−12.756*** [4.401]	−9.227** [3.900]	−12.323* [6.693]
Constant	4.318 [2.647]	3.594 [2.575]	4.081 [2.577]
Observations	87,315	91,427	90,681
Number of groups	27	27	27
Log likelihood	−7341	−7329	−7571

***Stignificant at 1% level; **Significant at 5% level; *Significant at 10% level.

Source: authors’ computation, based on EU-SILC (2008, 2011, 2014) data.

Table A9. Estimation results of income share for Model 4 for years 2007, 2010 and 2013 (wave 2008, 2011 and 2014), defining 3 income classes with thresholds 10^th and 90^th percentile.

	2007	2010	2013
Woman_head	−0.025 [0.046]	−0.097* [0.053]	−0.012 [0.043]
Age_head	0.001 [0.005]	−0.002 [0.004]	−0.001 [0.005]
Supervisory_head	0.412*** [0.152]	0.512** [0.211]	0.577** [0.235]
Children (%)	−1.187* [0.656]	−1.149* [0.617]	−1.092** [0.529]
Old (%)	−0.430** [0.202]	0.020 [0.150]	−0.099 [0.206]
Chronic (%)	−0.229*** [0.068]	−0.141* [0.081]	−0.199** [0.078]
Loneparent	−0.194 [0.204]	−0.057 [0.196]	−0.244** [0.115]
Tertiary education (%)	0.851*** [0.314]	0.815*** [0.292]	0.875*** [0.333]
Work (%)	0.352 [0.277]	0.424*** [0.159]	0.126 [0.169]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	11.561*** [4.338]	10.103** [4.411]	11.037* [5.935]
Lower Class	−6.133*** [1.703]	−5.786*** [1.659]	−6.288*** [1.776]
Middle Class	−4.034*** [1.104]	−3.823*** [1.131]	−4.177*** [1.171]
FDI*Lower Class	17.592*** [6.437]	12.320** [5.499]	16.736* [9.637]
FDI*Middle Class	−28.534*** [10.909]	−18.526*** [6.171]	−24.214** [12.237]
FDI* Tertiary education	17.592*** [6.437]	12.320** [5.499]	16.736* [9.637]
FDI* Tertiary education*Lower Class	−28.534*** [10.909]	−18.526*** [6.171]	−24.214** [12.237]
FDI* Tertiary education*Middle Class	−14.396*** [5.162]	−10.314** [4.598]	−14.285* [8.103]
Constant	5.297* [2.840]	4.332 [2.725]	5.008* [2.772]
Observations	87,315	91,427	90,681
Number of groups	27	27	27
Log likelihood	−7330	−7332	−7562

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Source: authors’ computation, based on EU-SILC (2008, 2011, 2014) data.

Table A10. Estimation results of income share for Model 4 for years 2007, 2010 and 2013 (wave 2008, 2011 and 2014), defining high education as secondary or tertiary education.

	2007	2010	2013
Woman_head	−0.048 [0.041]	−0.072* [0.043]	0.045 [0.042]
Age_head	0.004 [0.006]	−0.001 [0.003]	−0.003 [0.005]
Supervisory_head	0.253** [0.104]	0.289** [0.125]	0.389** [0.180]
Children (%)	−0.495 [0.406]	−0.548 [0.402]	−0.414 [0.317]
Old (%)	−0.028 [0.127]	0.195 [0.164]	0.033 [0.236]
Chronic (%)	−0.036 [0.065]	−0.056 [0.080]	−0.119 [0.080]
Loneparent	0.070 [0.220]	0.173 [0.189]	−0.050 [0.092]
Tertiary & Secondary education (%)	1.160* [0.662]	1.229 [0.767]	0.733 [0.770]
Work (%)	−0.130 [0.188]	−0.193 [0.258]	−0.429 [0.301]
GDPpc	0.000 [0.000]	0.000 [0.000]	0.000 [0.000]
FDI	8.571* [4.434]	8.788** [4.413]	9.456 [6.095]
Lower Class	−6.599*** [1.814]	−6.290*** [1.760]	−6.772*** [1.835]
Lower-middle Class	−5.306*** [1.453]	−4.949*** [1.365]	−5.348*** [1.419]
Upper-middle Class	−3.710*** [1.058]	−3.356*** [0.917]	−3.730*** [0.987]
FDI* Tertiary & Secondary education	17.506** [6.824]	12.640** [5.728]	15.892* [8.958]
FDI* Tertiary & Secondary education *Lower Class	−19.246** [8.164]	−15.283** [7.634]	−18.523 [11.411]
FDI* Tertiary & Secondary education *Lower-middle Class	−15.090** [6.435]	−12.052** [6.126]	−15.030 [9.299]
FDI* Tertiary & Secondary education *Upper-middle Class	−8.979** [4.199]	−7.478* [3.938]	−10.012 [6.321]
Constant	5.242 [3.348]	4.414 [3.066]	5.580* [3.252]
Observations	87,315	91,427	90,681
Number of groups	27	27	27
Log likelihood	−7123	−7165	−7426

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Source: authors’ computation, based on EU-SILC (2008, 2011, 2014) data.

Table A11. Estimation results of income share for Model 4 for years 2007, 2010 and 2013 (wave 2008, 2011 and 2014), for different subgroups of countries.

	2007					2010					2013
	EA19	Exc. LU NL	Exc. LU NL IE	Exc. CZ, HU, PL, SK	Exc. CZ, HU, PL, SK, RO, SL	EA19	Exc. LU NL	Exc. LU NL IE	Exc. CZ, HU, PL, SK	Exc. CZ, HU, PL, SK, RO, SL	EA19	Exc. LU NL	Exc. LU NL IE	Exc. CZ, HU, PL, SK	Exc. CZ, HU, PL, SK, RO, SL
Woman_head	−0.047 [0.061]	−0.017 [0.044]	−0.018 [0.046]	−0.027 [0.050]	−0.025 [0.057]	−0.095 [0.060]	−0.026 [0.027]	−0.029 [0.029]	−0.038 [0.033]	−0.042 [0.035]	0.039 [0.057]	0.016 [0.037]	0.016 [0.038]	0.020 [0.043]	0.009 [0.049]
Age_head	0.004 [0.008]	−0.003 [0.003]	−0.004 [0.003]	−0.003 [0.004]	−0.005 [0.003]	−0.003 [0.005]	−0.005 [0.004]	−0.005 [0.004]	−0.005 [0.005]	−0.007 [0.005]	−0.004 [0.006]	−0.003 [0.006]	−0.003 [0.006]	−0.003 [0.007]	−0.005 [0.007]
Supervisory_head	0.172** [0.083]	0.231** [0.101]	0.240** [0.107]	0.253** [0.114]	0.214** [0.105]	0.286** [0.137]	0.215* [0.121]	0.220* [0.128]	0.229* [0.133]	0.232 [0.143]	0.289** [0.143]	0.331* [0.177]	0.345* [0.186]	0.361* [0.196]	0.323* [0.189]
Children (%)	−0.831 [0.646]	−0.583 [0.530]	−0.610 [0.561]	−0.680 [0.618]	−0.733 [0.644]	−0.799 [0.596]	−0.519 [0.502]	−0.55 [0.539]	−0.62 [0.584]	−0.648 [0.610]	−0.678 [0.527]	−0.326 [0.383]	−0.339 [0.405]	−0.404 [0.457]	−0.491 [0.498]
Old (%)	−0.292 [0.219]	−0.145 [0.122]	−0.151 [0.126]	−0.192 [0.151]	−0.150 [0.167]	0.067 [0.233]	0.049 [0.135]	0.06 [0.137]	0.032 [0.163]	0.076 [0.175]	−0.014 [0.341]	−0.156 [0.179]	−0.146 [0.185]	−0.204 [0.208]	−0.232 [0.221]
Chronic (%)	−0.062 [0.070]	−0.097 [0.059]	−0.099* [0.058]	−0.097 [0.077]	−0.081 [0.078]	0.028 [0.111]	−0.025 [0.080]	−0.027 [0.083]	−0.02 [0.098]	0.017 [0.104]	−0.123 [0.090]	−0.147** [0.059]	−0.147** [0.061]	−0.186*** [0.071]	−0.183** [0.074]
Loneparent	0.256 [0.341]	0.149 [0.283]	0.149 [0.288]	0.205 [0.341]	0.271 [0.369]	0.348 [0.299]	0.261 [0.268]	0.274 [0.277]	0.346 [0.324]	0.405 [0.348]	0.094 [0.179]	0.041 [0.129]	0.041 [0.134]	0.077 [0.156]	0.144 [0.172]
Tertiary education (%)	0.978 [0.730]	0.211 [0.227]	0.219 [0.250]	0.152 [0.219]	0.129 [0.195]	1.093 [0.836]	0.22 [0.258]	0.251 [0.293]	0.145 [0.244]	0.165 [0.223]	0.577 [0.939]	−0.045 [0.259]	−0.042 [0.277]	−0.192 [0.282]	−0.257 [0.273]
Work (%)	−0.041 [0.240]	−0.109 [0.200]	−0.114 [0.211]	−0.057 [0.244]	−0.122 [0.258]	−0.343 [0.328]	−0.037 [0.209]	−0.038 [0.207]	−0.04 [0.234]	−0.155 [0.243]	−0.723* [0.384]	−0.365 [0.315]	−0.377 [0.320]	−0.424 [0.356]	−0.629* [0.367]
GDPpc	0.000 [0.000]	−0.000 [0.000]	−0.000 [0.000]	−0.000 [0.000]	−0.000 [0.000]	0.0000 [0.000]	0.0000 [0.000]	0.0000 [0.000]	0.0000 [0.000]	0.0000 [0.000]	0.000 [0.000]	−0.000 [0.000]	−0.000 [0.000]	−0.000 [0.000]	−0.000 [0.000]
FDI	15.935*** [5.665]	9.330** [4.350]	9.332** [4.355]	9.890** [4.703]	12.370** [5.740]	14.854** [5.934]	8.948** [4.248]	8.947** [4.252]	9.510** [4.673]	11.862** [5.702]	21.898*** [8.415]	9.632 [5.940]	9.643 [5.950]	10.773 [7.330]	13.995* [8.035]

Table A11. Continued.

	2007					2010					2013
	EA-19	Exc. LU, NL	Exc. LU, NL, IE	Exc. CZ, HU, PL, SK	Exc. CZ, HU, PL, SK, RO, SL	EA-19	Exc. LU, NL	Exc. LU, NL, IE	Exc. CZ, HU, PL, SK	Exc. CZ, HU, PL, SK, RO, SL	EA-19	Exc. LU, NL	Exc. LU, NL, IE	Exc. CZ, HU, PL, SK	Exc. CZ, HU, PL, SK, RO, SL
Lower Cl.	−8.751*** [2.174]	−5.907*** [1.753]	−5.964*** [1.812]	−6.293*** [1.915]	−7.131*** [2.115]	−8.371*** [2.302]	−5.625*** [1.653]	−5.670*** [1.711]	−6.027*** [1.829]	−6.689*** [2.014]	−9.272*** [2.161]	−6.272*** [1.796]	−6.350*** [1.861]	−6.616*** [1.889]	−7.183*** [2.021]
Lower-middle Cl.	−6.959*** [1.660]	−4.749*** [1.395]	−4.797*** [1.447]	−4.995*** [1.500]	−5.791*** [1.655]	−6.604*** [1.770]	−4.494*** [1.305]	−4.530*** [1.356]	−4.749*** [1.419]	−5.361*** [1.579]	−7.405*** [1.600]	−5.068*** [1.421]	−5.134*** [1.477]	−5.261*** [1.455]	−5.765*** [1.553]
Upper-middle Cl.	−4.868*** [1.079]	−3.275*** [0.970]	−3.312*** [1.007]	−3.383*** [1.016]	−4.065*** [1.094]	−4.491*** [1.109]	−3.084*** [0.878]	−3.111*** [0.915]	−3.214*** [0.932]	−3.698*** [1.025]	−5.183*** [1.002]	−3.641*** [1.027]	−3.696*** [1.070]	−3.715*** [1.024]	−4.164*** [1.085]
FDI* Tertiary education	25.983*** [7.978]	12.724** [5.494]	12.695** [5.456]	13.398** [5.991]	18.443*** [7.129]	19.889*** [6.643]	12.888** [5.684]	12.853** [5.640]	13.376** [6.124]	17.637** [7.447]	34.666*** [11.568]	16.341* [9.485]	16.267* [9.437]	17.627 [11.178]	25.359** [12.471]
FDI* Tertiary education* Lower	−33.215*** [10.483]	−17.392*** [6.703]	−17.373*** [6.654]	−18.286** [7.155]	−23.108*** [8.446]	−24.690*** [6.681]	−17.696*** [6.153]	−17.655*** [6.086]	−18.257*** [6.444]	−22.332*** [7.723]	−41.510*** [13.108]	−22.669** [11.305]	−22.593** [11.234]	−24.405* [12.873]	−31.458** [14.258]
FDI* Tertiary education *Lower-middle	−25.777*** [7.687]	−13.478** [5.458]	−13.444** [5.416]	−14.108** [5.890]	−18.879*** [6.983]	−19.870*** [6.436]	−13.352** [5.533]	−13.314** [5.485]	−13.793** [5.906]	−17.942** [7.185]	−34.733*** [10.818]	−17.094* [9.309]	−17.016* [9.256]	−18.394* [10.834]	−25.471** [11.994]
FDI* Tertiary education *Upper-middle	−16.608*** [5.257]	−7.377** [3.729]	−7.343** [3.709]	−7.712* [4.173]	−11.668** [4.531]	−13.172*** [4.469]	−7.805** [3.777]	−7.773** [3.746]	−8.049* [4.129]	−10.849** [4.776]	−24.881*** [7.022]	−10.817* [6.463]	−10.747* [6.426]	−11.554 [7.700]	−17.512** [8.379]
Constant	8.328** [4.121]	8.076*** [2.878]	8.119*** [2.900]	8.327*** [3.225]	10.776*** [3.805]	6.037 [4.020]	7.522*** [2.784]	7.541*** [2.804]	7.866** [3.138]	9.929*** [3.756]	7.753** [3.595]	8.504*** [2.954]	8.572*** [2.988]	8.745*** [3.083]	10.283*** [3.594]
Observations	60,356	82,253	80,366	64,557	58,926	63761	85552	83874	67662	61946	64,252	85,596	83,428	69,094	63,546
N. of groups	19	25	24	21	19	19	25	24	21	19	19	25	24	21	19
Log likelihood	−5303	−6391	−6181	−5530	−5038	−5330	−6368	−6159	−5511	−5023	−5456	−6730	−6506	−5816	−5287

***Significant at 1% level; **Significant at 5% level; *Significant at 10% level.

Note: EA-19 stands for the 19 countries that composed Euro Area from January 2015: Belgium (BE) Germany (DE) Estonia (EE) Ireland (IE) Greece (EL) Spain (ES) France (FR) Italy (IT) Cyprus (CY) Latvia (LV) Lithuania (LT) Luxembourg (LU) Malta (MT) Netherlands (NL) Austria (AT) Portugal (PT) Slovenia (SI) Slovakia (SK) and Finland (FI).

Exc. LU, NL: stands for the 27 countries except Luxembourg and Netherlands.

Exc. LU, NL, IE: stands for the 27 countries except Luxembourg, Netherlands and Ireland.

Exc. CZ, HU, PL, SK: stands for the 27 countries except Czechia, Hungary, Poland, and Slovakia. Is as.

Exc. CZ, HU, PL, SK, RO, SL: stands for the 27 countries except Czechia, Hungary, Poland, Slovakia, Romania and Slovenia.

**Source: authors’ computation, based on EU-SILC (2008, 2011, 2014) data.

EU-SILC cross UDB 2008, 2011, 2014 – version of 2019-04.

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Figini, P., & Görg, H. (2011). Does foreign direct investment affect wage inequality? An empirical investigation. The World Economy, 34(9), 1455–1475. https://doi.org/10.1111/j.1467-9701.2011.01397.x

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