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Regional development traps in Europe. A study of occupational trajectories of regions

Author

Listed:
  • Milene Tessarin
  • Ron Boschma
  • Deyu Li
  • Sergio Petralia

Abstract

This paper presents an evolutionary perspective on regional development traps that centers around the structural inability of regions to develop new and complex occupations. Using European Labor Force Survey data, we follow occupational trajectories of 237 European regions and provide evidence on which regions are trapped, what kinds of traps they have fallen into, and which regions have managed to escape such traps. We find a clear-cut divide in Europe: almost all non-trapped regions are in Northern and Western Europe, while trapped regions are found primarily in South and Eastern Europe. However, this geographical divide does not apply to all types of regional traps. Our results also show that regional development traps are persistent: regions often remain in the same trap, but not always. Our study suggests a feasible pathway for low-complexity regions to overcome a development trap is by building capabilities in related occupations and then diversify into complex occupations. Once complexity levels are high, regions tend not to lose their complexity.

Suggested Citation

  • Milene Tessarin & Ron Boschma & Deyu Li & Sergio Petralia, 2025. "Regional development traps in Europe. A study of occupational trajectories of regions," Papers in Evolutionary Economic Geography (PEEG) 2501, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2025.
    • Handle: RePEc:egu:wpaper:2501
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    File URL: http://econ.geo.uu.nl/peeg/peeg2501.pdf
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    More about this item

    Keywords

    regional development traps; evolutionary traps; occupations; relatedness; complexity; low complexity trap; structural trap;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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