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Labour Productivity Polarization Across Western European Regions: Threshold Effects Versus Neighbourhood Effects

In: The Labour Market Impact of the EU Enlargement

Author

Listed:
  • Roberto Basile

    (Institute for Studies and Economic Analysis (ISAE) and Centro di Economia, Regionale, dei Trasporti e del Turismo (CERTeT))

Abstract

The regional distribution of labour productivity in Western Europe is characterised by a Core-Periphery spatial pattern: high (low) productivity regions are in a proximate relationship with other high (low) productivity regions. Over the period 1980–2003, intra-distribution dynamics has generated long-run multiple equilibria with the formation of two clubs of convergence. The observed dynamics can only marginally be explained by nonlinear (threshold) effects in the accumulation of physical capital. In contrast, the joint effect of spatial dependence and nonlinearities in growth behaviour play a key role in determining multiple equilibria and reinforcing polarization of labour productivity.

Suggested Citation

  • Roberto Basile, 2010. "Labour Productivity Polarization Across Western European Regions: Threshold Effects Versus Neighbourhood Effects," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement, pages 75-97, Springer.
    • Handle: RePEc:spr:aiechp:978-3-7908-2164-2_4
    DOI: 10.1007/978-3-7908-2164-2_4
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    Citations

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    Cited by:

    1. Aleh Mazol, 2016. "Spatial wage inequality in Belarus," BEROC Working Paper Series 35, Belarusian Economic Research and Outreach Center (BEROC).
    2. Olga A. Demidova, 2014. "The asymmetric spatial effects for eastern and western regions of Russia," HSE Working papers WP BRP 50/EC/2014, National Research University Higher School of Economics.
    3. Демидова Ольга Анатольевна & Иванов Денис Сергеевич, 2016. "Модели Экономического Роста С Неоднородными Пространственными Эффектами (На Примере Российских Регионов)," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 20(1), pages 52-75.
    4. Demidova, Olga, 2021. "Methods of spatial econometrics and evaluation of government programs effectiveness," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 64, pages 107-134.
    5. Demidova, Olga, 2014. "Spatial-autoregressive model for the two groups of related regions (eastern and western parts of Russia)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 34(2), pages 19-35.

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