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Policy responses to regional unemployment:Lessons from Germany, Spain and Italy

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  • S. Davies
  • M. Hallet

Abstract

The paper examines the causes of high regional unemployment in Germany, Spain and Italy, and identifies a number of areas where policy action is needed. Lower unemployment rates will not only depend on stability-oriented macroeconomic policies and a sufficiently flexible labour market, but also on moves towards more decentralised wage bargaining systems; efforts to reduce regions' long-term dependency on fiscal transfers; changes in tax-benefit systems to improve incentives to create and take up jobs; efficient public expenditure on physical and human capital and action to reduce obstacles to labour mobility.

Suggested Citation

  • S. Davies & M. Hallet, 2001. "Policy responses to regional unemployment:Lessons from Germany, Spain and Italy," European Economy - Economic Papers 2008 - 2015 161, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0161
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    File URL: https://ec.europa.eu/economy_finance/publications/pages/publication810_en.pdf
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    Citations

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    Cited by:

    1. Rycx, François & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, Institute of Labor Economics (IZA).
    2. Juan Duque & Raúl Ramos & Jordi Suriñach, 2006. "Wages and productivity: the role of labour market institutions in OECD countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 33(4), pages 231-243, September.
    3. Hochreiter, Eduard & Schmidt-Hebbel, Klaus & Winckler, Georg, 2002. "Monetary union: European lessons, Latin American prospects," The North American Journal of Economics and Finance, Elsevier, vol. 13(3), pages 297-321, December.
    4. Bande, Roberto & Fernández, Melchor & Montuenga, Víctor, 2008. "Regional unemployment in Spain: Disparities, business cycle and wage setting," Labour Economics, Elsevier, vol. 15(5), pages 885-914, October.
    5. Michael Rusinek & Ilan Tojerow, 2014. "The Regional Dimension of Collective Wage Bargaining: The Case of Belgium," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 301-317, February.
    6. Berthold, Norbert & Neumann, Michael, 2006. "Agglomeration and the Case of Germany: How to Help the Lagging East," Discussion Paper Series 86, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    7. Fredrik Carlsen & Kåre Johansen, 2004. "Subjective Measures of Employment Opportunities and Interregional Migration," LABOUR, CEIS, vol. 18(4), pages 563-589, December.

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