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What drives employment growth and social inclusion in EU regions?

Marco Di Cataldo () and Andrés Rodríguez-Pose ()

No 11551, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 (search for similar items in EconPapers)
JEL-codes: J64 O52 R23 (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-eur, nep-tid and nep-ure
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Working Paper: What drives employment growth and social inclusion in EU regions? (2017) Downloads
Working Paper: What drives employment growth and social inclusion in EU regions (2016) Downloads
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