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The Impact of the Institutions on Regional Unemployment Disparities in Europe

  • Floro Ernesto Caroleo
  • Gianluigi Coppola

The main aim of this paper is to study European regional disparities in unemployment, considering regional productive structures and some regional institutional variables. It is widely known that one most important stylized facts concerning the EU consists in regional disparities among regions. Such differences relate to both income per capita and the labour market, the latter generally measured in terms of unemployment rates. In a recent paper (Amendola, Caroleo Coppola, 2004) we have analysed the economic structure of the EU’s regions using proxies for the productive structure and the labour market. In this paper we estimate a panel data model where the dependent variable is the regional unemployment rate and the independent variables relate to the productive structure and some regional institutional aspects. The results confirm that institutional variables, such as the centralization of wage bargaining, the decentralization of public expenditure and the level of bureaucracy, have important impacts on unemployment rates.

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Paper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 4_2006.

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Date of creation: 15 Feb 2006
Date of revision:
Handle: RePEc:prt:dpaper:4_2006
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  1. Angel de la Fuente, 2002. "Convergence across countries and regions: theory and empirics," UFAE and IAE Working Papers 555.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Floro Ernesto Caroleo, 2000. "Le politiche per l'occupazione in Europa: una tassonomia istituzionale," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2000(71).
  3. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 361-408, October.
  4. Adalgiso Amendola & Floro Ernesto Caroleo & Gianluigi Coppola, 2004. "Regional Disparities in Europe," CELPE Discussion Papers 78, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    • Adalgiso Amendola & Floro Ernesto Caroleo & Gianluigi Coppola, 2006. "Regional Disparities in Europe," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 2, pages 9-31 AIEL - Associazione Italiana Economisti del Lavoro.
  5. Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
  6. Cristiano Perugini & Marcello Signorelli, 2004. "Employment Performance and Convergence in the European Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 1(2), pages 243-278, December.
  7. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 205-253, 04.
  8. Taylor, Jim & Bradley, Steve, 1997. "Unemployment in Europe: A Comparative Analysis of Regional Disparities in Germany, Italy and the UK," Kyklos, Wiley Blackwell, vol. 50(2), pages 221-45.
  9. Christiane Krieger-Boden & Dirk Dohse & Rüdiger Soltwedel, 1999. "EMU Challenges European Labor Markets," IMF Working Papers 99/131, International Monetary Fund.
  10. Raffaele Paci & Francesco Pigliaru, 1999. "European regional growth: do sectors matter?," Chapters, in: Economic Growth and Change, chapter 8 Edward Elgar.
  11. Daniele V., 2002. "Integrazione economica e monetaria e divari regionali nell'Unione europea," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3, pages 513-550.
  12. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.
  13. Floro Ernesto Caroleo & Sergio Destefanis (ed.), 2006. "The European Labour Market. Regional Dimensions," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, number 01, 10.
  14. Joeri Gorter & S. Ederveen, 2002. "Does European cohesion policy reduce regional disparities? An empirical analysis," CPB Discussion Paper 15, CPB Netherlands Bureau for Economic Policy Analysis.
  15. Lucio R. Pench & Paolo Sestito & Elisabetta Frontini, 1999. "Some unpleasant arithmetics of regional unemployment in the EU. Are there any lessons for EMU?," European Economy - Economic Papers 134, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  16. Niebuhr, Annekatrin, 2002. "Spatial dependence of regional unemployment in the European Union," HWWA Discussion Papers 186, Hamburg Institute of International Economics (HWWA).
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