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This paper explores the components of aggregate labour productivity inequality between Italian regions from 2000 to 2013. The Gini index of inequality in aggregate labour productivity is decomposed, showing the extent to which sector productivity differentials and differences in industry‐mix contribute to regional productivity inequality. In addition, the contribution of the interaction between differences in industry‐mix and sector productivity differentials is revealed by the decomposition. Each of these contributions to inequality is measured by considering the spatial dimension of regional inequality, since the contributions of inequality between non‐neighbouring regions and inequality between neighbouring regions are separated. [ABSTRACT FROM AUTHOR]

Regional governments' discretion in allocating structural funds is limited by the competences of the European Commission to control fiscal activities of decentralized governments. Regional political behaviour and the complexity of the implementation process shape the policy outcome. Who benefits from structural funds? In this paper, we analyse implementation of ERDF funds in East Germany in the financial perspective 2007 to 2013. We find that less rural regions and some economic sectors benefit by more than others. A few beneficiaries control the highest share of the funds. The Gini coefficients vary by group of actor and show high inequality in the distribution of the funds. This indicates that a few actors have better access to the funds than others. [ABSTRACT FROM AUTHOR]

This article aims to shed light on the dynamics of Spanish regional unemployment rates and determine the driving forces of their disparities. The Spanish economy has one of the highest unemployment rates in the EU and is characterised by severe regional disparities. We apply the chain reaction theory of unemployment according to which the evolution of unemployment is driven by the interplay of lagged adjustment processes and the spillover effects within the labour market system. Our model includes nationwide as well as region-specific variables, and takes into account the limited labour and firm mobility in Spain. We show that the degree of labour market flexibility differs between high and low unemployment regions, and find that investment has a major influence on the unemployment trajectory. In addition, we find that in bad times high unemployment regions are hit more severely than low unemployment regions, while in good times, high unemployment regions do not benefit as much as low unemployment regions. [ABSTRACT FROM AUTHOR]

The article investigates the different growth patterns of islands and mainland regions by looking at their tourism and territorial characteristics differences. We considered per capita income and employment growth patterns in a panel data model focused on 74 regions in seven European countries from 2008 to 2019. The results show how the importance of some growth factors, especially those related to tourism and environmental sustainability, varies between islands and mainland regions. The article suggests specific policy implications for island regions in line with the European Union guidelines. Our findings support the need to pursue different approaches to sustain growth in islands and mainland regions, particularly for the tourism industry. [ABSTRACT FROM AUTHOR]

The article comprises an analysis of the adjustment of regional labour markets of former (and present) EU candidate countries to asymmetric shocks. As in EU member states, a substantial part of the adjustment to changes in employment in candidate countries is carried by participation decisions, and migration plays a small role. Candidate countries, however, have experienced larger region-specific shocks to labour demand than member states, and these shocks lead to higher long-run changes in employment. Furthermore, adjustment mechanisms partly explain high regional unemployment. High unemployment regions exhibit a lower capability to absorb region-specific shocks through mechanisms other than higher unemployment. [ABSTRACT FROM AUTHOR]