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What are the impacts of Cohesion Policy on the trade-off between employment and productivity?

Author

Listed:
  • Sebastien Bourdin

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • Sergio Destefanis

    (UNISA - Università degli Studi di Salerno = University of Salerno)

  • Gianluigi Coppola

    (UNISA - Università degli Studi di Salerno = University of Salerno)

  • Maria Kubara

    (UW - Uniwersytet Warszawski [Polska] = University of Warsaw [Poland] = Université de Varsovie [Pologne])

Abstract

This paper examines the heterogeneous effectiveness of European Union (EU) Cohesion Policy in fostering regional growth, considering the potential trade-off between productivity improvement and job creation. By analysing the impact of European Structural and Investment Funds on regional development at the NUTS-2 level, the study contributes to the literature on productivity and employment trade-offs at the regional level. A novel empirical approach, based on a multi-input multi-output transformation function, is employed to explore the differing impacts of EU Cohesion Policy on gross domestic product (GDP) per employee and employment rate. The findings suggest that there exists heterogeneity (across different funds and regions) in the effects of Cohesion Policy on the trade-off between employment and productivity. Striking a balance between productivity-boosting investments and job creation is crucial in ensuring sustainable economic development and social inclusion and in reducing regional disparities.

Suggested Citation

  • Sebastien Bourdin & Sergio Destefanis & Gianluigi Coppola & Maria Kubara, 2024. "What are the impacts of Cohesion Policy on the trade-off between employment and productivity?," Post-Print hal-04972065, HAL.
  • Handle: RePEc:hal:journl:hal-04972065
    DOI: 10.1080/00343404.2024.2379444
    as

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