The Impact of the Institutions on Regional Unemployment Disparities

Floro Caroleo () and Gianluigi Coppola ()

CELPE Discussion Papers from CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy

Abstract: The main aim of this paper is to study European regional disparities in unemployment, considering regional productive structures and some regional institutional variables. It is widely known that one most important stylized facts concerning the EU consists in regional disparities among regions. Such differences relate to both income per capita and the labour market, the latter generally measured in terms of unemployment rates. In a recent paper (Amendola, Caroleo Coppola, 2004) we have analyzed the economic structure of the EU’s regions using proxies for the productive structure and the labour market. In this paper we estimate a panel data model where the dependent variable is the regional unemployment rate and the independent variables relate to the productive structure and some regional institutional aspects. The results confirm that institutional variables, such as the centralization of wage bargaining, the decentralization of public expenditure and the level of bureaucracy, have important impactson unemployment rates.

Keywords: Unemployment; Regional Disparities; Institutions; Multivariate Analysis; Panel data (search for similar items in EconPapers)
JEL-codes: C23 H70 R23 (search for similar items in EconPapers)
Date: 2005-10
New Economics Papers: this item is included in nep-eec, nep-geo and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Working Paper: The impact of institutions on Regional unemployment disparities (2005)
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