Income and employment dynamics in Europe

The study intends to deepen the analysis of the dynamics of income and employment in Europe between 1989 and 1996 by considering the complex spatial consequences of the failure of the Fordist production model. Previous studies found evidence of polarization in unemployment rates and persistence in per-capita income in European regions. When Objective 1 regions are excluded from the analysis, different results are obtained but a marked difference in the dynamics of income and unemployment rate is still found. This difference e may have been caused by Country effects and the features of two specific kinds of regions: old industrialized regions and urban and capital regions. The relationship between the dynamics of employment and the dynamics of income is, therefore, significantly affected by the spatial consequences of production changes and socio-economic transformations.