The Dark Side of the Crisis: Disparities in per Capita income (2000–12) and the Urban‐Rural Gradient in Greece

Abstract The present study investigates changes (2000–12) in the spatial distribution of per capita income in Greece assessing how economic expansion and recession shape regional disparities in a traditionally‐divided country. Descriptive statistics, multivariate techniques and spatial analysis have been carried out to identify clusters of Greek regions with an homogeneous development path. Results outline how the gap between wealthy and disadvantaged regions consolidated with economic expansion (2000–07) strengthening the centrality of medium‐size urban areas, industrial and tourism‐specialised districts. Recession (2008–12) has widened the gap between Athens and the rest of Greece, while mitigating the disparities in per capita income between rich and poor regions. This evidence seem to contrast with literature indicating how dynamic regions came to be less exposed to recession than economically‐disadvantaged regions. The 2008–09 crisis stimulates a rethinking of the geography of socio‐economic disparities in highly‐divided countries, pointing out how expansion and recession differently impact the spatial distribution of wealth.