Policy responses to regional unemployment:Lessons from Germany, Spain and Italy

S. Davies and M. Hallet

No 161, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: The paper examines the causes of high regional unemployment in Germany, Spain and Italy, and identifies a number of areas where policy action is needed. Lower unemployment rates will not only depend on stability-oriented macroeconomic policies and a sufficiently flexible labour market, but also on moves towards more decentralised wage bargaining systems; efforts to reduce regions' long-term dependency on fiscal transfers; changes in tax-benefit systems to improve incentives to create and take up jobs; efficient public expenditure on physical and human capital and action to reduce obstacles to labour mobility.

Keywords: labour force; wages; policy changes; labour mobility; European Economy. Economic Papers (search for similar items in EconPapers)
Pages: 85 pages
Date: 2001-12
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0161

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