Abstract
This paper conceptualizes and empirically explores the resilience of European Union regional labour markets in terms of labour productivity growth. We assess the effect of pre-crisis region-specific factors on regional labour markets resilience controlling for the effect of exogenous technological change and substitution between capital and labour. Regional input–output models are developed to estimate supplies and sales linkages across the European Union NUTS-2 regional economies. Spatial Durbin Error Model estimates suggest that regional labour markets characterised by a higher level of economic pull capabilities of the Construction sector and a higher level of industrial concentration can better withstand the effects of the negative shock and recover faster. Place-based policies building on regions’ competitive strengths can smooth out the negative effect of the economic shock and accelerate the recovery of regional labour markets, while policy interventions promoting capital investment can further enhance labour productivity in European Union regions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.