Do informal institutions matter for the economic resilience of European regions? A study of the post-2008 shock

Elena Prodi, Stefano Ghinoi, Lauretta Rubini and Francesco Silvestri ()
Additional contact information
Elena Prodi: University of Ferrara
Lauretta Rubini: University of Ferrara
Francesco Silvestri: University of Ferrara

Economia Politica: Journal of Analytical and Institutional Economics, 2023, vol. 40, issue 1, No 8, 189-223

Abstract: Abstract This paper investigates the relationship between informal institutions and resilience across EU regions in the years following the 2008 Great Recession. By using voluntary work as a proxy for informal institutions, we analyse its association with regional resilience over two different periods: the resistance phase (2008–2010) and the recovery phase (2010–2013). Overall, we find robust evidence that voluntary work is positively associated with greater regional resilience. Our results also show that there is a relation between voluntary work and formal institutions, represented by welfare state models. Overall, the effect of voluntary work is always positive for strong welfare states, but its effect is mitigated by the presence of public provisions. Additionally, in regions with a relatively weaker institutional context, informal institutions retain their positive effect. However, in this context, informal institutions appear to take more time to deploy their effects, but their positive impact on regional labour market recovery is even stronger than in other welfare regimes, probably due to the poor public support that characterises this welfare system.

Keywords: Regional resilience; Welfare state; Volunteering; Formal and informal institutions; Spatial models (search for similar items in EconPapers)
JEL-codes: C21 E02 O52 R12 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40888-022-00293-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:epolit:v:40:y:2023:i:1:d:10.1007_s40888-022-00293-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40888

DOI: 10.1007/s40888-022-00293-5

Access Statistics for this article

Economia Politica: Journal of Analytical and Institutional Economics is currently edited by Alberto Quadrio Curzio

More articles in Economia Politica: Journal of Analytical and Institutional Economics from Springer, Fondazione Edison
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().