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Structural Change and Labour Reallocation Across Regions: A Review of the Literature

In: The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?

Author

Listed:
  • Floro Ernesto Caroleo

    (Università di Napoli Parthenope)

  • Francesco Pastore

    (Seconda Università di Napoli)

Abstract

The focus of this chapter is on the microeconomic foundations of structural change and its spatially asymmetric impact on labour markets. EU economies are undergoing dramatic industrial restructuring due to a number of causes, such as the Eastward enlargement and economic integration of Central and Eastern European countries, as well as a more general process of integration of emerging economies into world trade. In turn this is causing technical change, relocation of economic activities and reallocation of capital and labour resources. An overly optimistic view of the ability of the market economy to sustain economic development has long neglected the labour market consequences of structural change, but the availability of new data sets and the specific nature of economic transition in new member states has once again brought this issue to the fore, suggesting that it might also provide an explanation of several typical features of regional imbalances in old member states. The old and new literature suggests theoretical reasoning and empirical evidence to confirm this.

Suggested Citation

  • Floro Ernesto Caroleo & Francesco Pastore, 2010. "Structural Change and Labour Reallocation Across Regions: A Review of the Literature," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 2, pages 17-47, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:04-02
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    File URL: http://link.springer.com/chapter/10.1007/978-3-7908-2164-2_2
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    Cited by:

    1. Julia Jauer & Thomas Liebig & John P. Martin & Patrick Puhani, 2014. "Migration as an Adjustment Mechanism in the Crisis? A Comparison of Europe and the United States," OECD Social, Employment and Migration Working Papers 155, OECD Publishing.
    2. Roberto Basile & Alessandro Girardi & Marianna Mantuano & Francesco Pastore, 2012. "Sectoral shifts, diversification and regional unemployment: evidence from local labour systems in Italy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 525-544, November.
    3. Francesco Pastore, 2012. "Primum vivere . . . industrial change, job destruction and the geographical distribution of unemployment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-15, December.
    4. Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
    5. Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute of Labor Economics (IZA).
    6. Pastore, Francesco, 2013. "Primum vivere… Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute of Labor Economics (IZA).
    7. Mussida, Chiara & Pastore, Francesco, 2012. "Is There a Southern-Sclerosis? Worker Reallocation and Regional Unemployment in Italy," IZA Discussion Papers 6954, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Structural Change; Labour Turnover; Regional Unemployment; Optimal Speed of Transition; Eastward Enlargement of the EU.;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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