A Spatial Analysis of Disposable Income in Ireland: A GWR Approach

TL;DR

This study uses Geographically Weighted Regression to analyze how demographic factors influence household income across different regions in Ireland, revealing spatial heterogeneity and local variations.

Contribution

The paper applies GWR to explore spatial variability in income and demographic impacts in Ireland, addressing limitations of global models and highlighting local differences.

Findings

Income distribution is spatially dependent in Ireland.

Demographic factors influence income differently across regions.

GWR reveals local variations in demographic impacts.

Abstract

This paper examines the spatial distribution of income in Ireland. Median gross household disposable income data from the CSO, available at the Electoral Division (ED) level, is used to explore the spatial variability in income. Geary's C highlights the spatial dependence of income, highlighting that the distribution of income is not random across space and is influenced by location. Given the presence of spatial autocorrelation, utilising a global OLS regression will lead to biased results. Geographically Weighted Regression (GWR) is used to examine the spatial heterogeneity of income and the impact of local demographic drivers on income. GWR results show the demographic drivers have varying levels of influence on income across locations. Lone parent has a stronger negative impact in the Cork commuter belt than it does in the Dublin commuter belt. The relationship between household income and the demographic context of the area is a complicated one. This paper attempts to examine these relationships acknowledging the impact of space.