Impact on Regional Employment
The current literature on the effectiveness of EU funding has mainly focused on the question whether EU aid has promoted economic growth and convergence (for a survey see Esposti and Bussoletti, 2008; Hagen and Mohl, 2011). However, the employment effects are key to understanding regional income disparities (measured, e.g. as GDP per capita), since income differences are, per definition, based on differences in the labour productivity and/or employment level, among other factors. In addition, parts of the EU expenditures (in particular Objective 2 payments) are directly aimed at reducing disparities in the employment sector.
KeywordsMarginal Effect Market Potential Union Density Employment Level Structural Fund
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