2023-09-28 14:46:10 +00:00
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abstract: 'High unemployment and regional inequalities are major concerns for
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European policy makers. but so far connections between policies dealing
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with unemployment and regional inequalities have been few and weak. We
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think that this should change. This paper documents a regional and
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transnational dimension to unemployment - i.e.. geographical
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unemployment clusters that do not respect national boundaries. Since the
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Mid 1980s, regions with high or low initial unemployment rates saw
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little change, while regions with intermediate unemployment moved
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towards extreme values. During,, this polarization, nearby regions
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tended to share similar outcomes due, we argue, to spatially related
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changes in labour demand. These spatially correlated demand shifts were
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due in part to initial clustering of low-skilled regions and badly
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performing industries but a significant neighbour effect remains even
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after controlling for these, and the effect is as strong within as it is
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between nations. We believe this reflects agglomeration effects of
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economic integration. The new economic geography literature shows how
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integration fosters employment clusters that need not respect national
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borders. If regional labour forces do not adjust, regional unemployment
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polarization with neighbour effects can result. To account for these
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`neighbour efficiency a cross-regional and transnational dimension
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should be added to national policies. actions should consider policies
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that encourage regional wage setting, and short distance mobility, and
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the EU should consider including transnational considerations in its
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regional policy, since neighbour effects on unemployment mean that an
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anti-unemployment policy paid for by one region will benefit
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neighbouring regions. Since local politicians gain no votes or tax
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revenues from these `spillozeis'', they are likely to underestimate the
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true benefit of the policy and thus tend to undertake too little of it.'
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affiliation: 'Overman, HG (Corresponding Author), Univ London London Sch Econ \& Polit
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Sci, London WC2A 2AE, England.
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Univ London London Sch Econ \& Polit Sci, London WC2A 2AE, England.
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Univ Toronto, Toronto, ON M5T 1R8, Canada.'
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author: Overman, HG and Puga, D and Vandenbussche, H
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author_list:
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- family: Overman
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given: HG
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- family: Puga
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given: D
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- family: Vandenbussche
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given: H
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da: '2023-09-28'
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eissn: 1468-0327
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files: []
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issn: 0266-4658
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journal: ECONOMIC POLICY
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language: English
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month: APR
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number: '34'
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number-of-cited-references: '21'
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orcid-numbers: Puga, Diego/0000-0003-2640-1534
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pages: 115-147
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papis_id: 58254fa6c98e9167fd34cbc836e3e7b7
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ref: Overman2002unemploymentclusters
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researcherid-numbers: Puga, Diego/A-9184-2008
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times-cited: '36'
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title: Unemployment clusters across Europe's regions and countries
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000175384700004
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usage-count-last-180-days: '0'
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usage-count-since-2013: '0'
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web-of-science-categories: Economics
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year: '2002'
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