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The Impact of the Institutions on Regional Unemployment Disparities

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Abstract

The main aim of this paper is to study European regional disparities in unemployment, considering regional productive structures and some regional institutional variables. It is widely known that one most important stylized facts concerning the EU consists in regional disparities among regions. Such differences relate to both income per capita and the labour market, the latter generally measured in terms of unemployment rates. In a recent paper (Amendola, Caroleo Coppola, 2004) we have analyzed the economic structure of the EU’s regions using proxies for the productive structure and the labour market. In this paper we estimate a panel data model where the dependent variable is the regional unemployment rate and the independent variables relate to the productive structure and some regional institutional aspects. The results confirm that institutional variables, such as the centralization of wage bargaining, the decentralization of public expenditure and the level of bureaucracy, have important impactson unemployment rates.

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  • Floro Ernesto Caroleo & Gianluigi Coppola, 2005. "The Impact of the Institutions on Regional Unemployment Disparities," CELPE Discussion Papers 98, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:98
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    Cited by:

    1. Olga Demidova & Marcello Signorelli, 2010. "The Impact of Crises on Youth Unemployment of Russian Regions: An Empirical Analysis," Quaderni del Dipartimento di Economia, Finanza e Statistica 78/2010, Università di Perugia, Dipartimento Economia.
    2. Cristiano Perugini & Marcello Signorelli, 2007. "Labour Market Performance Differentials and Dynamics in EU-15 Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 209-262, September.
    3. Cristiano Perugini & Marcello Signorelli, 2010. "Youth labour market performance in European regions," Economic Change and Restructuring, Springer, vol. 43(2), pages 151-185, May.
    4. Roberto Basile & Luca De Benedictis, 2008. "Regional unemployment and productivity in Europe," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 173-192, June.
    5. Carlo Maria Arpaia & Raffaele Doronzo & Paquale Ferro, 2009. "Computerization, accounting transparency and competitiveness of public administration: a regional analysis," Questioni di Economia e Finanza (Occasional Papers) 48, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Unemployment; Regional Disparities; Institutions; Multivariate Analysis; Panel data;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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