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The macroeconomic implications of the European Social Fund: An impact assessment exercise using the RHOMOLO model

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Abstract

We evaluate the macroeconomic impacts of the European Social Fund (ESF) across the EU at both the national and the regional level. To this end, we use the RHOMOLO dynamic spatial Computable General Equilibrium model developed by the JRC for territorial impact assessment. We find out that the contribution of ESF funds is important for speeding up the economic recovery taking place in most European economies, with the ESF generating economic benefits which are higher than its costs by 2030. However, GDP and employment growth are not the main objectives of the policy. Given the wage benefits and productivity enhancing effects associated with the ESF, its distributional effects are also of interest.

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  • Stylianos Sakkas, 2018. "The macroeconomic implications of the European Social Fund: An impact assessment exercise using the RHOMOLO model," JRC Working Papers on Territorial Modelling and Analysis 2018-01, Joint Research Centre.
    • Handle: RePEc:ipt:termod:201801
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    1. Stylianos Sakkas & Andrea Conte & Simone Salotti, 2018. "The impact of the European Social Fund: The RHOMOLO assessment," JRC Research Reports JRC113328, Joint Research Centre.
    2. Martin Christensen & Andrea Conte & Filippo Di Pietro & Patrizio Lecca & Giovanni Mandras & Simone Salotti, 2018. "The third pillar of the Investment Plan for Europe: An impact assessment using the RHOMOLO model," JRC Working Papers on Territorial Modelling and Analysis 2018-02, Joint Research Centre.
    3. Giovanni Mandras & Andrea Conte & Simone Salotti, 2019. "Coal regions in transition: the RHOMOLO-IO indirect jobs estimates," JRC Research Reports JRC118641, Joint Research Centre.
    4. Carlo Gianelle & Fabrizio Guzzo & Javier Barbero & Simone Salotti, 2022. "The economic implications of Smart Specialisation governance: a general equilibrium analysis for Italy 2014-2020," JRC Working Papers on Territorial Modelling and Analysis 2022-05, Joint Research Centre.
    5. Mark Thissen & Olga Ivanova & Giovanni Mandras & Trond Husby, 2019. "European NUTS 2 regions: construction of interregional trade-linked Supply and Use tables with consistent transport flows," JRC Working Papers on Territorial Modelling and Analysis 2019-01, Joint Research Centre.
    6. Christensen, Martin & Weiers, Georg & Wolski, Marcin, 2019. "The 2019 assessment of the macroeconomic effects of the European Fund for Strategic Investments with the RHOMOLO-EIB model," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 45, pages 5-15.

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    Keywords

    region; growth; European Social Fund; labour market; Cohesion Policy; RHOMOLO;
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