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The Impact of the Institutions on Regional Unemployment Disparities

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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 analyzed 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 impactson unemployment rates.

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Bibliographic Info

Paper provided by CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy in its series CELPE Discussion Papers with number 98.

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Date of creation: Oct 2005
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Handle: RePEc:sal:celpdp:98

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Keywords: Unemployment; Regional Disparities; Institutions; Multivariate Analysis; Panel data;

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References

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  1. Adalgiso Amendola & Floro Ernesto Caroleo & Maria Rosaria Garofalo, 1997. "Labour Market and Decentralized Decision-making: An Institutional Approach," LABOUR, CEIS, CEIS, vol. 11(3), pages 497-516, November.
  2. Daniele V., 2002. "Integrazione economica e monetaria e divari regionali nell'Unione europea," Rivista economica del Mezzogiorno, Società editrice il Mulino, Società editrice il Mulino, issue 3, pages 513-550.
  3. Floro Ernesto Caroleo, 2000. "Le politiche per l'occupazione in Europa: una tassonomia istituzionale," STUDI ECONOMICI, FrancoAngeli Editore, FrancoAngeli Editore, vol. 2000(71).
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  12. Marelli, Enrico, 2004. "Evolution of employment structures and regional specialisation in the EU," Economic Systems, Elsevier, Elsevier, vol. 28(1), pages 35-59, March.
  13. Enrico Marelli, 2006. "Regional Employment Dynamics in the EU: Structural Outlook, Co-Movements, Clusters and Common Shocks," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 4, pages 89-121 AIEL - Associazione Italiana Economisti del Lavoro.
  14. Christiane Krieger-Boden & Dirk Dohse & Rüdiger Soltwedel, 1999. "EMU Challenges European Labor Markets," IMF Working Papers, International Monetary Fund 99/131, International Monetary Fund.
  15. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
  16. Adalgiso Amendola & Floro Ernesto Caroleo & Gianluigi Coppola, 2004. "Regional Disparities in Europe," CELPE Discussion Papers, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy 78, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
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  18. 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.
  19. Lars Calmfors, 1993. "Centralisation of Wage Bargaining and Macroeconomic Performance: A Survey," OECD Economics Department Working Papers 131, OECD Publishing.
  20. 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, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission 134, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
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Cited by:
  1. Olga Demidova & Marcello Signorelli, 2010. "The Impact of Crises on Youth Unemployment of Russian Regions: An Empirical Analysis," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 78/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  2. Cristiano Perugini & Marcello Signorelli, 2010. "Youth labour market performance in European regions," Economic Change and Restructuring, Springer, Springer, vol. 43(2), pages 151-185, May.
  3. Cristiano Perugini & Marcello Signorelli, 2007. "Labour Market Performance Differentials and Dynamics in EU-15 Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 209-262, September.
  4. Carlo Maria Arpaia & Raffaele Doronzo & Paquale Ferro, 2009. "Computerization, accounting transparency and competitiveness of public administration: a regional analysis," Questioni di Economia e Finanza (Occasional Papers), Bank of Italy, Economic Research and International Relations Area 48, Bank of Italy, Economic Research and International Relations Area.

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