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Policy responses to regional unemployment:Lessons from Germany, Spain and Italy

Author(s): S. Davies and M. Hallet

Policy responses to regional unemployment:Lessons from Germany, Spain and Italypdf(470 kB) Choose translations of the previous link 

The paper examines the causes of high regional unemployment in Germany, Spain and Italy, and identifies a number of areas where policy action is needed. Lower unemployment rates will not only depend on stability-oriented macroeconomic policies and a sufficiently flexible labour market, but also on moves towards

  • more decentralised wage bargaining systems;
  • efforts to reduce regions’ long-term dependency on fiscal transfers;
  • changes in tax-benefit systems to improve incentives to create and take up jobs;
  • efficient public expenditure on physical and human capital and
  • action to reduce obstacles to labour mobility.

(European Economy. Economic Papers No. 161. December 2001. Brussels. 85pp. Tab. Free.)

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