DP3594 Unemployment Dynamics of the 'Mezzogiornos of Europe': Lessons for the Mezzogiorno of Italy

Author(s): Roberto Basile, Fiorella Kostoris Padoa Schioppa
Publication Date: October 2002
Keyword(s): europe, regional development policies, unemployment
JEL(s): J60, O52, R58
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=3594

The unemployment dynamics in the Mezzogiorno of Italy seem to corroborate the New Economic Geography predictions, whereby, under some specific hypotheses, a stronger economic integration can amplify the regional polarisation of unemployment rates in Europe. It is, however, unclear which features characterise the South of Italy compared to other Peripheral areas in the Union. To answer this question, this work investigates the Core/Periphery pattern in the European Union and carries out a comparative analysis of unemployment rates of the different ‘Mezzogiornos of Europe’. Finally, some policy prescriptions are proposed to reduce unemployment in the South of Italy.