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Labour Market Institutions and Regional Unemployment Disparities. Evidence for Europe. WWWforEurope Working Paper No. 29

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  • Peter Huber

Abstract

We conduct a theoretically based, empirical analysis of the impact of national wage bargaining, labour market and housing market institutions as well as product market regulation on regional unemployment rate disparities. Using both national and regional data on unemployment rates for 14 EU countries for the period 1998 to 2009 we find a robust correlation between centralisation, net replacement rates and regional autonomy with the size of regional unemployment rate disparities within a country and a further potential role for minimum wages, generosity of old age and sickness benefits, marginal tax rates, housing market flexibility, employment protection and the costs of overtime contracts. In contrast to expectations only the regional autonomy index, net replacement rates, sickness benefits and employment protection are positively correlated with regional unemployment rate disparities, while the other robust variables are negatively correlated.

Suggested Citation

  • Peter Huber, 2013. "Labour Market Institutions and Regional Unemployment Disparities. Evidence for Europe. WWWforEurope Working Paper No. 29," WIFO Studies, WIFO, number 46890.
    • Handle: RePEc:wfo:wstudy:46890
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    Cited by:

    1. Rodríguez-Pose, Andrés & Di Cataldo, Marco, 2016. "What drives employment growth and social inclusion in EU regions?," CEPR Discussion Papers 11551, C.E.P.R. Discussion Papers.
    2. 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.
    3. Karl Aiginger & Kurt Kratena & Margit Schratzenstaller & Teresa Weiss, 2014. "Moving Towards a New Growth Model. WWWforEurope Deliverable No. 3," WIFO Studies, WIFO, number 47247.
    4. Michael Böheim & Anna Strauss & Teresa Weiss, 2015. "Moving Towards a New Growth Model – Policy Options. WWWforEurope Deliverable No. 10," WIFO Studies, WIFO, number 58556.
    5. Harald Badinger & David Bailey & Lisa de Propris & Peter Huber & Jürgen Janger & Kurt Kratena & Hans Pitlik & Thomas Sauer & Renaud Thillaye & Jeroen C.J.M. van den Bergh, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition – Part II: Model and Area Chapters. WWWforEurope Deliverable No. 12," WIFO Studies, WIFO, number 58792, July.

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