Income and Employment Dynamics in Europe

Abstract

This study intends to deepen the analysis of the dynamics of income and employment in Europe by considering also the complex spatial consequences of the failure of the Fordist production model. Other studies found evidence of a polarisation process in regional unemployment rates and permanence in per capita income. We find evidence that Objective 1 regions account for such a result and that the differences between the patterns followed by regional growth and unemployment in Europe can be explained by country effects and by the features of two specific kinds of regions: old industrialised and urban and capital regions.