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Unemployment in European regions: structural problems versus the Eurozone hypothesis

Author

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  • David Emanuel Andersson
  • Åke E. Andersson
  • Björn Hårsman
  • Zara Daghbashyan

Abstract

Unemployment rates differ dramatically across European regions. This article analyses these differences by integrating institutional and spatial perspectives into a unified dynamic framework distinguishing between slow and fast processes of change. The framework forms the basis for an econometric model that is used to analyse labour market differences among European Nomenclature des unités territoriales statistiques 2 regions. The results of random-effects models indicate that four key factors—all of which are of the slowly changing type—explain a large part of the variation in unemployment as well as employment rates. Flexible labour market regulations and above-average levels of interpersonal trust are institutional factors that reduce unemployment. Accessibility factors such as inter-regional transport connectivity and local access to skilled workers have similarly substantial effects. Whether a region belongs to the Eurozone or not seems to be less important.

Suggested Citation

  • David Emanuel Andersson & Åke E. Andersson & Björn Hårsman & Zara Daghbashyan, 2015. "Unemployment in European regions: structural problems versus the Eurozone hypothesis," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 883-905.
    • Handle: RePEc:oup:jecgeo:v:15:y:2015:i:5:p:883-905.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbu058
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    Cited by:

    1. Antonio Di Paolo & Ada Ferrer‐i‐Carbonell, 2022. "Regional borders, local unemployment, and life satisfaction," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 412-442, March.
    2. Sin-Yu Ho & Bernard Njindan Iyke, 2019. "Unemployment And Inflation: Evidence Of A Nonlinear Phillips Curve In The Eurozone," Journal of Developing Areas, Tennessee State University, College of Business, vol. 53(4), pages 151-163, Fall.
    3. Beyer, Robert C.M. & Stemmer, Michael A., 2016. "Polarization or convergence? An analysis of regional unemployment disparities in Europe over time," Economic Modelling, Elsevier, vol. 55(C), pages 373-381.
    4. David Emanuel Andersson & Åke E. Andersson & Björn Hårsman & Xiyi Yang, 2020. "The geography of science in 12 European countries: a NUTS2-level analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(2), pages 1099-1125, August.
    5. Susan Christopherson & Gordon L. Clark & John Whiteman, 2015. "Introduction: the Euro crisis and the future of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 843-853.
    6. George Grekousis, 2018. "Further Widening or Bridging the Gap? A Cross-Regional Study of Unemployment across the EU Amid Economic Crisis," Sustainability, MDPI, vol. 10(6), pages 1-18, May.
    7. Liping Liao & Minzhe Du & Jie Huang, 2022. "The Effect of Urban Resilience on Residents’ Subjective Happiness: Evidence from China," Land, MDPI, vol. 11(11), pages 1-19, October.

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