The purpose of this thesis is to investigate how ageing affects regional economic differences. This is relevant since the Swedish population is getting older and the regional differences seem to increase. We use two hypotheses to try to answer the research question. These are if there is a relationship between age and economic differences and if ageing is a divergence factor. We will use different definitions of age to determine the population structures relationship with income. To test the hypothesis we use the fixed-effect and the two-way fixed effect model. To test convergence we will use the beta-convergence test. This allows for analysis and discussions. We can see that there is a negative relationship between the dependency ratio and income and the same can be said between the share of labour force age and income. However, we can not see a negative relationship between mean age and LQ for mean age indicating that age is not negative in itself but the change in population structure. When dividing municipalities we see the negative relationship between the big city municipalities and rural municipalities. We can not see any evidence for convergence or divergence in the whole country. However, it can be seen when dividing into richer and poorer regions. Then not only in earned income but in age.