Skip to main content

CEP discussion paper

Unemployment Clusters Across European Regions and Countries


European regions have experienced a polarisation of their unemployment rates between 1986 and 1996, as regions with intermediate rates have been driven by changes in regional employment, only partly offset by labour force changes. Regions' outcomes have closely followed those of neighbouring regions. This is only weakly explained by regions being part og the same member state, having a similar skill composition, or broad sectoral specialisation. Even more surpriisingly , foreign neighbours matter as much as domestic neighbours. All of this suggests a reorganisation of economic activities withh increasing disregard for national borders.


Henry Overman and Diego Puga

August 1999     Paper Number CEPDP0434

Download PDF - Unemployment Clusters Across European Regions and Countries