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Revitalising Rural Left-Behind Places through the Social Economy: Combating Depopulation and Unemployment

Author

Listed:
  • Yolanda de Llanos

    (Department of Economics, Universidad de Extremadura, Spain)

  • Luisa Alamá-Sabater

    (Department of Economics and IIDL, Universitat Jaume I, Castellón, Spain)

  • Miguel Ángel Márquez

    (Department of Economics, Universidad de Extremadura, Spain)

  • Emili Tortosa-Ausina

    (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

This paper examines the concept of left-behind places through the lens of neoendogenous development, with special attention to the role of the social economy in enhancing territorial resilience. Focusing on the Autonomous Community of Extremadura (Spain) as a representative regional case, it investigates the bidirectional relationship between population dynamics and employment using a simultaneous equations model that captures the spatial interdependencies among rural, urban and semi-urban municipalities. The findings highlight that employment growth drives population growth (supporting the idea that people follow jobs) while no evidence is found for the reverse. Local factors such as age structure, foreign population, income per capita and the presence of cooperatives also play a significant role in shaping these dynamics. Notably, the presence of social economy entities has a positive effect on both population and employment growth. The results suggest several policy pathways to mitigate depopulation: promoting employment in urban and intermediate areas, improving rural accessibility, and strengthening the social economy as a key strategy to foster sustainable local development.

Suggested Citation

  • Yolanda de Llanos & Luisa Alamá-Sabater & Miguel Ángel Márquez & Emili Tortosa-Ausina, 2026. "Revitalising Rural Left-Behind Places through the Social Economy: Combating Depopulation and Unemployment," Working Papers 2026/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2026/03
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    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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