What Drives Employment Growth and Social Inclusion in EU Regions?

43 Pages Posted: 10 Oct 2016

See all articles by Marco Di Cataldo

Marco Di Cataldo

London School of Economics & Political Science (LSE) - Department of Geography and Environment; Ca' Foscari University of Venice, Department of Economics

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Date Written: October 2016

Abstract

The European Union promotes development strategies aimed at producing growth with "a strong emphasis on job creation and poverty reduction". However, whether the economic conditions in place in EU regions are ideal for the generation of high- and low-skilled employment and labour market inclusion is unclear. This paper assesses how the key factors behind EU growth strategies -infrastructure, human capital, innovation, quality of government- condition employment generation and labour market exclusion in European regions. The findings indicate that the dynamics of employment and social exclusion vary depending on the conditions in place in a region. While higher innovation and education contribute to overall employment generation in some regional contexts, low-skilled employment grows the most in regions with a better quality of government. Regional public institutions, together with the endowment of human capital, emerge as the main factors for the reduction of labour market exclusion - particularly in the less developed regions- and the promotion of inclusive employment growth across Europe.

Keywords: employment, Europe, regions, skills, social exclusion

JEL Classification: J64, O52, R23

Suggested Citation

Di Cataldo, Marco and Rodríguez-Pose, Andrés, What Drives Employment Growth and Social Inclusion in EU Regions? (October 2016). CEPR Discussion Paper No. DP11551, Available at SSRN: https://ssrn.com/abstract=2850393

Marco Di Cataldo (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Ca' Foscari University of Venice, Department of Economics ( email )

Cannaregio 873
Venice, Veneto 30121
Italy

Andrés Rodríguez-Pose

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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