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What drives employment growth and social inclusion in EU regions

Di Cataldo, Marco and Rodríguez-Pose, Andrés (2016) What drives employment growth and social inclusion in EU regions. Discussion Paper Series, DP11551. Centre for Economic Policy Research, London, UK.

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Abstract

The European Union promotes development strategies aimed at producing growth with “a strong emphasis on job creation and poverty reduction”. However, whether the economic conditions in place in EU regions are ideal for the generation of high- and low-skilled employment and labour market inclusion is unclear. This paper assesses how the key factors behind EU growth strategies – infrastructure, human capital, innovation, quality of government – condition employment generation and labour market exclusion in European regions. The findings indicate that the dynamics of employment and social exclusion vary depending on the conditions in place in a region. While higher innovation and education contribute to overall employment generation in some regional contexts, low-skilled employment grows the most in regions with a better quality of government. Regional public institutions, together with the endowment of human capital, emerge as the main factors for the reduction of labour market exclusion – particularly in the less developed regions – and the promotion of inclusive employment growth across Europe.

Item Type: Monograph (Discussion Paper)
Official URL: http://cepr.org/
Additional Information: © 2016 The Authors
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
Sets: Departments > Geography and Environment
Date Deposited: 05 Dec 2016 11:07
Last Modified: 05 Dec 2016 11:24
Projects: European Union’s Seventh Framework Programme (FP7/2007-2013)/ERC [grant agreement number 269868].
Funders: Economic and Social Research Council, European Research Council
URI: http://eprints.lse.ac.uk/id/eprint/68510

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