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The Impact of the Institutions on Regional Unemployment Disparities in Europe

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Author Info
Floro Ernesto Caroleo
Gianluigi Coppola

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Abstract

The main aim of this paper is to study European regional disparities in unemployment, considering regional productive structures and some regional institutional variables. It is widely known that one most important stylized facts concerning the EU consists in regional disparities among regions. Such differences relate to both income per capita and the labour market, the latter generally measured in terms of unemployment rates. In a recent paper (Amendola, Caroleo Coppola, 2004) we have analysed the economic structure of the EU’s regions using proxies for the productive structure and the labour market. In this paper we estimate a panel data model where the dependent variable is the regional unemployment rate and the independent variables relate to the productive structure and some regional institutional aspects. The results confirm that institutional variables, such as the centralization of wage bargaining, the decentralization of public expenditure and the level of bureaucracy, have important impacts on unemployment rates.

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Paper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 4_2006.

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Date of creation: 15 Feb 2006
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Handle: RePEc:prt:dpaper:4_2006

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Find related papers by JEL classification:
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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  1. Floro Ernesto Caroleo, 2000. "Le Politiche per l'Occupazione in Europa: una Tassonomia Istituzionale," CELPE Discussion Papers 52, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  2. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Economic Policy, CEPR, CES, MSH, vol. 17(35), pages 361-408, October. [Downloadable!] (restricted)
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  3. ?gel de la Fuente, . "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  4. Pench, L.R. & Sestito, P. & Frontini, E., 1999. "Some Unpleasant Arithmetics of Regional Unemployment in the EU. Are there any lessons for EMU?," European Economy - Economic Papers 134, Commission of the EC, Directorate-General for Economic and Financial Affairs (DG ECFIN).
  5. Cristiano Perugini & Marcello Signorelli, 2004. "Employment Performance and Convergence in the European Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 1(2), pages 243-278, December. [Downloadable!]
  6. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association. [Downloadable!]
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  7. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR, CES, MSH, vol. 16(32), pages 205-253, 04. [Downloadable!] (restricted)
  8. Sjef Ederveen & Joeri Gorter, . "European cohesion policy reduce regional disparities? An empirical analysis," CPB Discussion Papers 15, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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