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Local employment policies in the context of the economic crisis:Influences of the European Community structural instruments

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  • Matei, Lucica
  • Matei, Ani

Abstract

For several European states, including Romania, the European integration process has overlapped with the effects of the economic and financial crisis. The consequences of such a situation are apparently contradictory. On one hand, the crisis lowers the European integration process in view of achieving the performance imposed by the Single Market, the economic and administrative convergence etc. On the other hand, the possibility of accessing the European structural funds becomes a welcome financial resource for diminishing or stopping the effects of the crisis. The second alternative establishes new balances or imbalances at the local community level, with effect on the employment policies. The European structural instruments – Structural Funds, Cohesion Fund, EC initiatives – are associated with the effects induced in view to achieve the EU objectives such as: economic, social and territorial cohesion, economic growth, competitiveness, employment, sustainable development etc. The current paper aims to emphasise in a theoretic and empiric manner, the influences of these structural instruments on the employment policies at local level. At the same time, those influences will be correlated statistically with the effects of the financial crisis, obtaining a more comprehensive image concerning the consequences of the mix of national and EC policies for the economic integration and fight against the effects of the financial crisis for some EU states. The authors propose a model of local development based on the theory of the general balance, integrating the resources provided by the structural instruments and emphasizing their compensatory effects related to the financial crisis. The proposed model is empirically exemplified for some development regions in Romania, suggestive for general conclusions, of comparative nature, at European and international level

Suggested Citation

  • Matei, Lucica & Matei, Ani, 2010. "Local employment policies in the context of the economic crisis:Influences of the European Community structural instruments," MPRA Paper 23086, University Library of Munich, Germany, revised 15 May 2010.
  • Handle: RePEc:pra:mprapa:23086
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    References listed on IDEAS

    as
    1. Matei, Ani, 2007. "Empirical Approaches About the Input-Output Model for the Local Economic Development: Case Study in Braila Municipality," MPRA Paper 18907, University Library of Munich, Germany, revised 10 Aug 2009.
    2. John Bradley, 2006. "Evaluating the impact of European Union Cohesion policy in less-developed countries and regions," Regional Studies, Taylor & Francis Journals, vol. 40(2), pages 189-200.
    3. John Bradley & Timo Mitze & Edgar Morgenroth & Gerhard Untiedt, 2005. "An Integrated Micro-Macro (IMM) Approach to the Evaluation of Large-scale Public Investment Programmes: The Case of EU Structural Funds," Papers WP167, Economic and Social Research Institute (ESRI).
    4. Bradley, John & Modesto, Leonor & Sosvilla-Rivero, Simon, 1995. "HERMIN : A macroeconometric modelling framework for the EU periphery," Economic Modelling, Elsevier, vol. 12(3), pages 221-247, July.
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    More about this item

    Keywords

    local employment policies; economic crisis; structural instruments;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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