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What drives employment growth and social inclusion in the regions of the European Union?

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

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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: social exclusion; employment; skills; regions; Europe (search for similar items in EconPapers)
JEL-codes: J64 O52 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
Date: 2017-02-03
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Published in Regional Studies, 3, February, 2017, 51(12), pp. 1840-1859. ISSN: 0034-3404

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