Do EU Structural Funds Promote Regional Employment? Evidence from Dynamic Panel Data

48 Pages Posted: 15 Dec 2011

See all articles by Philipp Mohl

Philipp Mohl

ZEW – Leibniz Centre for European Economic Research

Tobias Hagen

Frankfurt University of Applied Sciences - ReLUT - Research Lab for Urban Transport

Date Written: November 23, 2011

Abstract

Despite its rather broad goal of promoting 'economic, social and territorial cohesion', the existing literature has mainly focused on investigating the Cohesion Policy’s growth effects. This ignores the fact that part of the EU expenditures is directly aimed at reducing disparities in the employment sector. Against this background, the paper analyses the impact of EU structural funds on employment drawing on a panel dataset of 130 European NUTS regions over the time period 1999-2007. Compared to previous studies we explicitly take into account the unambiguous theoretical propositions by testing the conditional impact of structural funds on the educational attainment of the regional labour supply, use more precise measures of structural funds for an extended time horizon and examine the robustness of our results by comparing different dynamic panel econometric approaches to control for heteroscedasticity, serial and spatial correlation as well as for endogeneity. Our results indicate that high-skilled population in particular benefits from EU structural funds.

Keywords: EU structural funds, dynamic panel models, spatial panel econometrics, regional employment effects

JEL Classification: R11, R12, C23, J20

Suggested Citation

Mohl, Philipp and Hagen, Tobias, Do EU Structural Funds Promote Regional Employment? Evidence from Dynamic Panel Data (November 23, 2011). ECB Working Paper No. 1403, Available at SSRN: https://ssrn.com/abstract=1963699

Philipp Mohl (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Tobias Hagen

Frankfurt University of Applied Sciences - ReLUT - Research Lab for Urban Transport

Germany

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