Place-Based Policies and Spatial Disparities across European Cities
AbstractSpatial disparities in income levels and worklessness in the European Union are profound, persistent and may be widening. We describe disparities across metropolitan regions and discuss theories and empirical evidence that help us understand what causes these disparities. Increases in the productivity benefits of cities, the clustering of highly educated workers and increases in their wage premium all play a role. Europe has a long-standing tradition of using capital subsidies, enterprise zones, transport investments and other place-based policies to address these disparities. The evidence suggests these policies may have partially offset increasing disparities but are not sufficient to fully offset the economic forces at work.
CitationEhrlich, Maximilian v., and Henry G. Overman. 2020. "Place-Based Policies and Spatial Disparities across European Cities." Journal of Economic Perspectives, 34 (3): 128-49. DOI: 10.1257/jep.34.3.128
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 Size and Spatial Distributions of Regional Economic Activity
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics