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What drives employment growth and social inclusion in EU regions?

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  • Di Cataldo, Marco
  • Rodríguez-Pose, Andrés

Abstract

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 EU 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 EU 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

  • Di Cataldo, Marco & Rodríguez-Pose, Andrés, 2016. "What drives employment growth and social inclusion in EU regions?," CEPR Discussion Papers 11551, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11551
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    1. repec:taf:regstd:v:51:y:2017:i:12:p:1840-1859 is not listed on IDEAS
    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.

    More about this item

    Keywords

    employment; Europe; regions; skills; social exclusion;

    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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