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Place-based policies and spatial disparities across European cities

Ehrlich, Maximilian V. and Overman, Henry G. ORCID: 0000-0002-3525-7629 (2020) Place-based policies and spatial disparities across European cities. Journal of Economic Perspectives, 34 (3). 128 - 149. ISSN 0895-3309

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Identification Number: 10.1257/jep.34.3.128


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.

Item Type: Article
Official URL:
Additional Information: © 2020 American Economic Association
Divisions: Geography & Environment
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HT Communities. Classes. Races
Date Deposited: 23 Jun 2020 11:00
Last Modified: 20 Jun 2024 16:45

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