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What drives employment growth and social inclusion in the regions of the European Union?

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  • Marco Di Cataldo
  • Andrés Rodríguez-Pose

Abstract

What drives employment growth and social inclusion in the regions of the European Union? Regional Studies. The European Union promotes development strategies aimed at producing growth with ‘a strong emphasis on job creation and poverty reduction’. However, whether the economic conditions in place in European Union regions are ideal for the generation of high- and low-skilled employment and labour market inclusion is unclear. This paper assesses how the key factors behind European Union growth strategies – infrastructure, human capital, innovation, quality of government – condition employment generation and labour market exclusion in European regions. The findings indicate that the dynamics of employment and social exclusion vary depending on the conditions in place in a region. While higher innovation and education contribute to overall employment generation in some regional contexts, low-skilled employment grows the most in regions with a better quality of government. Regional public institutions, together with the endowment of human capital, emerge as the main factors for the reduction of labour market exclusion – particularly in the less developed regions – and the promotion of inclusive employment growth across Europe.

Suggested Citation

  • Marco Di Cataldo & Andrés Rodríguez-Pose, 2017. "What drives employment growth and social inclusion in the regions of the European Union?," Regional Studies, Taylor & Francis Journals, vol. 51(12), pages 1840-1859, December.
  • Handle: RePEc:taf:regstd:v:51:y:2017:i:12:p:1840-1859
    DOI: 10.1080/00343404.2016.1255320
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    Cited by:

    1. Iammarino, Simona & Rodríguez-Pose, Andrés & Storper, Michael, 2018. "Regional inequality in Europe: evidence, theory and policy implications," CEPR Discussion Papers 12841, C.E.P.R. Discussion Papers.
    2. F.C. Stam, 2018. "Enabling Creative Destruction : An Entrepreneurial Ecosystem Approach to Industrial Policy," Working Papers 18-05, Utrecht School of Economics.

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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