Unemployment in European Regions: Structural Problems vs. the Eurozone Hypothesis

Åke E. Andersson (), David Andersson, Björn Hårsman () and Zara Daghbashyan
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Åke E. Andersson: Jönköping International Business School, Postal: Department of Economics, Finance and Statistics, , PO Box 1026, , 551 11 Jönköping, , Sweden
Björn Hårsman: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

No 355, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: Unemployment rates differ dramatically across European regions. This paper analyses these differences by integrating institutional and spatial perspectives into a unified theoretical framework. An econometric model is then used to analyse differences among European NUTS2 regions. The results of random-effects models indicate that there are four key factors that explain regional unemployment rates. Flexible labour market regulations and above-average levels of interpersonal trust are institutional factors that reduce unemployment. Accessibility factors such as inter-regional transport connectivity and local access to skilled workers have similarly substantial effects. Whether a region belongs to the Eurozone or not seems to be less important.

Keywords: unemployment; Euro; institutions; accessibility (search for similar items in EconPapers)
JEL-codes: R10 R15 R23 R28 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2014-03-26
New Economics Papers: this item is included in nep-eec, nep-geo, nep-ger, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Andersson, Åke E., David Emanuel Andersson, Björn Hårsman and Zara Daghbashyan, 'Unemployment in European Regions: Structural Problems vs. the Eurozone Hypothesis' in Journal of Economic Geography, 2015.

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