COMPARATIVE ANALYSIS OF THE EU-27 COUNTRIES LABOUR MARKETS’ CONVERGENCE

Abstract

Convergence is one of the most developing research fields in the frameworks of economic growth's theory. The degree of real convergence has impact on projecting and management of relevant economic and regional policy in the EU. The empirical researches conducted by authors demonstrate that the speed of δ-convergence is low. In 1999-2007 we found δ-convergence in unemployment rates between EU regions NUTS 2, but in 2008-2009 data indicated divergence in regional unemployment rates in EU–27. In conducted analysis only the β-convergence of regional unemployment rates is significant and negative. This shows a convergence process where regions NUTS 2 in EU-27 with higher unemployment rates catch-up on the other ones with lower unemployment rates. Analysies of β-convergence indicate that within the period 1999–2009 the dispersion of labour productivity, labour force participation rates, employment rates between regions NUTS 2 in EU-27 was reduced. However, this relationship was not statistically significant.

DOI: http://dx.doi.org/10.5755/j01.em.17.1.2270