the Labour Market Impact of EU Enlargement

In particular, we asked whether, and how different, the causes of emergence and the evolution of regional imbalances in the new EU members of Central and Eastern Europe (CEE) are compared to those in the old EU members. Until recently, regional labour market imbalances were considered transitory phenomena, a consequence of state failure in generating distorted investment incentives in depressed regions as well as of excessive labour market rigidities. Labour mobility and wage flexibility were at the core of the debate over the causes of and cures for regional labour market imbalances. This book bears witness to the changed perspective of research on these issues. In the recent literature, internal labour migration is depicted as a cause of further divergence between advanced and backward regions, as higher returns on human and physical capital are expected to be paid in those regions where these factors are already concentrated. The book contributes to the debate by presenting important new findings on: a) the reasons why structural change in some sectors causes a slump in some regions, but not in others; b) the extent to which poverty traps explain regional imbalances as compared to such other alternative factors as spatial dependence and nonlinearity in growth behaviour; c) the degree of convergence across EU countries and regions; d) the role of labour mobility in reducing/increasing regional labour market imbalances, in particular in Central and Eastern Europe; e) and the role of an active labour market policy and child care facilities in alleviating the hardship of the weakest segments of the population. Floro Ernesto Caroleo and Francesco Pastore This book was conceived to collect selected essays presented at the session on “The Labour Market Impact of the European Union Enlargements. A New Regional Geography of Europe?” of the XXII Conference of the Italian Association of Labour Economics (AIEL). The session aimed to stimulate the debate on the continuity/ fracture of regional patterns of development and employment in old and new European Union (EU) regions. In particular, we asked whether, and how different, the causes of emergence and the evolution of regional imbalances in the new EU members of Central and Eastern Europe (CEE) are compared to those in the old EU members. Several contributions in this book suggest that a factor common to all backward regions, often neglected in the literature, is to be found in their higher than average degree of structural change or, more precisely, in the hardship they expe- ence in coping with the process of structural change typical of all advanced economies. In the new EU members of CEE, structural change is still a consequence of the continuing process of transition from central planning to a market economy, but also of what Fabrizio et al. (2009) call the “second transition”, namely that related to the run-up to and entry in the EU.