abstract: 'The European Regional Policy supports the most disadvantaged regions of the EU, aiming to foster a long-run convergence process. Between 2007 and 2013, the EU devoted substantial resources to low-income convergence regions, covering about one quarter of the EU population. Like other disadvantaged areas, Southern Italy received conspicuous funding. This work attempts to evaluate the effect of the intensive funding on local labour market participation across the convergence regions of Southern Italy, using a Diff-in-Diff identification strategy in a Dynamic Spatial Framework. An element of strength in this study is represented by the NUTS-3 dataset employed, drawn from official records. Controlling for socio-economic covariates, autoregressive components and spatial spillovers, the results obtained show a negative impact of the intensive EU funding on labour market participation. Many reasons may account for this phenomenon, ranging from poor targeting and monitoring, to the distortionary effects of the funds, to the strategic behaviour of the national government.' affiliation: 'Cerciello, M (Corresponding Author), Univ Naples Parthenope, Dept Econ \& Legal Studies, Via Gen Parisi 13, I-80132 Naples, Italy. Cerciello, Massimiliano; Agovino, Massimiliano; Garofalo, Antonio, Univ Naples Parthenope, Dept Econ \& Legal Studies, Via Gen Parisi 13, I-80132 Naples, Italy.' article-number: '100703' author: Cerciello, Massimiliano and Agovino, Massimiliano and Garofalo, Antonio author-email: 'massimiliano.cerciello@uniparthenope.it massimiliano.agovino@uniparthenope.it gar@uniparthenope.it' author_list: - family: Cerciello given: Massimiliano - family: Agovino given: Massimiliano - family: Garofalo given: Antonio da: '2023-09-28' doi: 10.1016/j.seps.2019.03.009 eissn: 1873-6041 files: [] issn: 0038-0121 journal: SOCIO-ECONOMIC PLANNING SCIENCES keywords-plus: 'EU STRUCTURAL FUNDS; INCOME INEQUALITY; CHILD-CARE; PANEL-DATA; ECONOMIC-GROWTH; FISCAL DECENTRALIZATION; FORCE PARTICIPATION; COHESION POLICY; IMPACT; UNION' language: English month: DEC number-of-cited-references: '147' orcid-numbers: 'GAROFALO, Antonio/0000-0001-8888-9200 Cerciello, Massimiliano/0000-0002-4767-5529' papis_id: ce424d80e3dea8fce54a88f875e43288 ref: Cerciello2019caringhand researcherid-numbers: 'Cerciello, Massimiliano/AAY-8434-2020 ' times-cited: '8' title: The caring hand that cripples? The effects of the European regional policy on local labour market participation in Southern Italy type: Article unique-id: WOS:000503052700026 usage-count-last-180-days: '0' usage-count-since-2013: '4' volume: '68' web-of-science-categories: Economics; Management; Operations Research \& Management Science year: '2019'