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The Impact of the Institutions on Regional Unemployment Disparities in Europe

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  • Floro Ernesto Caroleo
  • Gianluigi Coppola

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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Bibliographic Info

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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References

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  1. Daniele V., 2002. "Integrazione economica e monetaria e divari regionali nell'Unione europea," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3, pages 513-550.
  2. 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.
  3. R. Paci & F. Pigliaru, 1997. "European regional growth: do sectors matter?," Working Paper CRENoS 199703, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. 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.
  5. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
  6. repec:fth:eeccco:134 is not listed on IDEAS
  7. Angel de la Fuente, 2002. "Convergence across countries and regions: theory and empirics," UFAE and IAE Working Papers 555.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  8. 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.
  9. Joeri Gorter & S. Ederveen, 2002. "Does European cohesion policy reduce regional disparities? An empirical analysis," CPB Discussion Paper 15, CPB Netherlands Bureau for Economic Policy Analysis.
  10. Elhorst, J. Paul, 2001. "The mystery of regional unemployment differentials : a survey of theoretical and empirical explanations," Research Report 00C06, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  11. Adalgiso Amendola & Floro Ernesto Caroleo & Gianluigi Coppola, 2006. "Regional Disparities in Europe," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 2, pages 9-31 AIEL - Associazione Italiana Economisti del Lavoro.
  12. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Departmental Working Papers 2002-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  13. Niebuhr, Annekatrin, 2002. "Spatial dependence of regional unemployment in the European Union," HWWA Discussion Papers 186, Hamburg Institute of International Economics (HWWA).
  14. Taylor, Jim & Bradley, Steve, 1997. "Unemployment in Europe: A Comparative Analysis of Regional Disparities in Germany, Italy and the UK," Kyklos, Wiley Blackwell, vol. 50(2), pages 221-45.
  15. Christiane Krieger-Boden & Dirk Dohse & Rüdiger Soltwedel, 1999. "EMU Challenges European Labor Markets," IMF Working Papers 99/131, International Monetary Fund.
  16. Lucio R. Pench & Paolo Sestito & Elisabetta Frontini, 1999. "Some unpleasant arithmetics of regional unemployment in the EU. Are there any lessons for EMU?," European Economy - Economic Papers 134, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
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Cited by:
  1. Peter Huber, 2013. "Labour Market Institutions and Regional Unemployment Disparities," WWWforEurope Working Papers series 29, WWWforEurope.

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