Impact on Regional Employment

Abstract

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.

This chapter is based on the following joint article with Tobias Hagen: Mohl and Hagen (2011): The employment impacts of EU structural funds. Evidence from dynamic panel data, ECB Working Paper 1403, December.