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Did the Governance of EU Funds Help Italian Regional Labour Markets during the Great Recession?

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  • Roberta Arbolino
  • Paolo Di Caro
  • Ugo Marani

Abstract

European and national policy‐makers have highlighted the role of the cohesion policy in smoothing the effects of the crisis during the programme period 2007–13. To support these claims, however, specific evidence is needed. This article studied the relations between the absorption of the EU funds and regional labour markets in Italian regions during the Great Recession. By applying different panel data models to new data on cohesion policy, three main results were achieved. We found that the cohesion policy made a contribution to the resilience of Italian regional labour markets. Yet the short‐term consequences of the cohesion policy on regional economies were conditional on the heterogeneous quality of regional institutions. We also found that the policy changes introduced in Italy during the crisis increased the effectiveness of the cohesion policy. The analysis was controlled for endogeneity issues and alternative specifications.

Suggested Citation

  • Roberta Arbolino & Paolo Di Caro & Ugo Marani, 2020. "Did the Governance of EU Funds Help Italian Regional Labour Markets during the Great Recession?," Journal of Common Market Studies, Wiley Blackwell, vol. 58(2), pages 235-255, March.
    • Handle: RePEc:bla:jcmkts:v:58:y:2020:i:2:p:235-255
    DOI: 10.1111/jcms.12900
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    Cited by:

    1. Mindaugas Butkus & Alma Maciulyte-Sniukiene & Renata Macaitiene & Kristina Matuzeviciute, 2021. "A New Approach to Examine Non-Linear and Mediated Growth and Convergence Outcomes of Cohesion Policy," Economies, MDPI, vol. 9(3), pages 1-28, July.
    2. Enrique López‐Bazo, 2022. "The Impact of Cohesion Policy on Regional Differences in Support for the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 60(5), pages 1219-1236, September.
    3. Paolo Di Caro & Roberta Arbolino & Ugo Marani, 2018. "A note on the effects of human capital policies in Italy during the Great Recession," Economics Bulletin, AccessEcon, vol. 38(3), pages 1302-1312.
    4. Crescenzi, Riccardo & Giua, Mara & Sonzogno, Giulia Valeria, 2021. "Mind the Covid-19 crisis: An evidence-based implementation of Next Generation EU," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 278-297.
    5. Arbolino, Roberta & Caro, Paolo Di, 2021. "Can the EU funds promote regional resilience at time of Covid-19? Insights from the Great Recession11We thank the Editors and the four anonymous referees for helpful comments. We also thank Emanuele C," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 109-126.
    6. Destefanis, Sergio & Rehman, Naqeeb Ur, 2023. "Investment, innovation activities and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 474-490.
    7. Paolo Di Caro & Ugo Fratesi, 2022. "One policy, different effects: Estimating the region‐specific impacts of EU cohesion policy," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 307-330, January.

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