The diffusion of digital skills across EU regions:structural drivers and polarization dynamics

Serenella Caravella, Valeria Cirillo, Francesco Crespi, Dario Guarascio and Mirko Menghini

No 227, Working Papers in Public Economics from Department of Economics and Law, Sapienza University of Roma

Abstract: The digital transformation is an important driver of long-run productivity growth and, as such, it has the potential to promote a more inclusive and sustainable growth. However, digital capabilities, crucial to develop and govern new digital technologies, are unevenly distributed across European regions increasing the risk of divergence and polarization. By taking advantage of a set of original indicators capturing the level of digital skills in the regional workforce, this work analyzes the factors shaping the process of digital skill accumulation in the EU over the period 2011-2018. Relying on transition probability matrices and dynamic random effects probit models, we provide evidence of a strong and persistent regional polarization in the adoption and deployment of digital skills. Further, we investigate whether European Funds (European Regional Development Fund, Cohesion Funds, and European Social Funds) are capable to shape the digitalization process and to favor regional convergence

Keywords: Digital transition; Skills; Labour markets; Persistence; Regional development; EU policies (search for similar items in EconPapers)
JEL-codes: O14 O30 O38 (search for similar items in EconPapers)
Pages: 39
Date: 2022-10
New Economics Papers: this item is included in nep-eur, nep-geo, nep-knm, nep-sbm and nep-tid
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Related works:
Journal Article: The diffusion of digital skills across EU regions: structural drivers and polarisation dynamics (2023)
Working Paper: The diffusion of digital skills across EU regions: Structural drivers and polarization dynamics (2022)
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