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Unemployment in European Regions: Structural Problems vs. the Eurozone Hypothesis

Author

Listed:
  • Andersson, Åke E.

    (Jönköping International Business School)

  • Andersson , David Emanuel

    (Nottingham University Business School China)

  • Hårsman, Björn

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Daghbashyan, Zara

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

Unemployment rates differ dramatically across European regions. This paper analyses these differences by integrating institutional and spatial perspectives into a unified theoretical framework. An econometric model is then used to analyse differences among European NUTS2 regions. The results of random-effects models indicate that there are four key factors that explain regional unemployment 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

  • Andersson, Åke E. & Andersson , David Emanuel & Hårsman, Björn & Daghbashyan, Zara, 2014. "Unemployment in European Regions: Structural Problems vs. the Eurozone Hypothesis," Working Paper Series in Economics and Institutions of Innovation 355, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0355
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    References listed on IDEAS

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    Cited by:

    1. 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.

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    More about this item

    Keywords

    unemployment; Euro; institutions; accessibility;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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