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Employment in Spanish regions: cost-control or growth-enhancing policies?

Roberto Bande, Marika Karanassou () and Hector Sala
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Marika Karanassou: University of London

The Annals of Regional Science, 2019, vol. 62, issue 3, No 7, 635 pages

Abstract: Abstract The sets of relatively high and low unemployment regions have not changed in decades. Since generic labour market reforms have been fruitless on this respect, we explore whether such groups of regions react differently to key drivers of employment and wage setting. We find that while the more developed regions respond to labour share and investment innovations, employment in the more lagging regions is mainly led by capital accumulation. Our results give support to a place-based strategy of regional development, call for more region-specific policies and discard standard labour market reforms as a unique tool to manage the unemployment rate problem.

JEL-codes: E22 E24 J23 J31 R11 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Working Paper: Employment in Spanish regions: Cost control or growth-enhancing policies? (2017) Downloads
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DOI: 10.1007/s00168-019-00909-y

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