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The ex-post macroeconomic evaluation of the 2014-2020 European Social Fund, Youth Employment Initiative and REACT-EU labour market interventions

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  • Casas, Pablo
  • Christou, Tryfonas
  • García Rodríguez, Abián
  • Lazarou, Nicholas Joseph
  • Salotti, Simone

Abstract

We provide a macroeconomic evaluation of the impact of the 2014-2020 European Social Fund, the Youth Employment Initiative and the labour market interventions of the REACT-EU programme, using data updated to the end of 2023. We use the spatial dynamic general equilibrium model RHOMOLO, modified to include endogenous labour force participation, to analyse the impact of nearly €110 billion in total, showing how GDP, employment, wages and various measures of inequality respond to the policies. The results suggest that the European labour market policy has a substantial positive impact on the regional economies of the Union and on the labour force, with long-lasting positive effects on GDP and employment, and a reduction in regional disparities and macroeconomic educational mismatches.

Suggested Citation

  • Casas, Pablo & Christou, Tryfonas & García Rodríguez, Abián & Lazarou, Nicholas Joseph & Salotti, Simone, 2025. "The ex-post macroeconomic evaluation of the 2014-2020 European Social Fund, Youth Employment Initiative and REACT-EU labour market interventions," MPRA Paper 123410, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123410
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    More about this item

    Keywords

    European Social Fund; regional labour markets; general equilibrium modelling.;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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