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Place-based policies and spatial disparities across European cities

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  • Ehrlich, Maximilian V.
  • Overman, Henry G.

Abstract

Spatial disparities in income levels and worklessness in the European Union are profound, persistent and may be widening. We describe disparities across metropolitan regions and discuss theories and empirical evidence that help us understand what causes these disparities. Increases in the productivity benefits of cities, the clustering of highly educated workers and increases in their wage premium all play a role. Europe has a long-standing tradition of using capital subsidies, enterprise zones, transport investments and other place-based policies to address these disparities. The evidence suggests these policies may have partially offset increasing disparities but are not sufficient to fully offset the economic forces at work.

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  • Ehrlich, Maximilian V. & Overman, Henry G., 2020. "Place-based policies and spatial disparities across European cities," LSE Research Online Documents on Economics 105168, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:105168
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    • J1 - Labor and Demographic Economics - - Demographic Economics
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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