European regional unemployment disparities: Convergence or persistence?

The reduction of regional unemployment disparities is a key prerequisite for the achievement of socioeconomic cohesion in an integrated European Union. This article examines recent trends in the evolution of regional unemployment disparities across a number of European member states to determine whether and how far this reduction is occurring. There is in fact little indication of any widespread convergence of regional unemployment rates. Instead, regional unemployment disparities across Europe appear to be characterized by a high degree of persistence. Furthermore, the evidence suggests that this persistence is an equilibrium phenomenon rather than the result of prolonged disequilibrium in regional labour markets.