European regions have experienced a polarisation of their unemployment rates between 1986 and 1996, as regions with intermediate rates have been driven by changes in regional employment, only partly offset by labour force changes. Regions' outcomes have closely followed those of neighbouring regions. This is only weakly explained by regions being part og the same member state, having a similar skill composition, or broad sectoral specialisation. Even more surpriisingly , foreign neighbours matter as much as domestic neighbours. All of this suggests a reorganisation of economic activities withh increasing disregard for national borders.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0434.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Esteban, Joan & Ray, Debraj, 1994.
"On the Measurement of Polarization,"
Econometrica,
Econometric Society, vol. 62(4), pages 819-51, July.
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