Abstract
In this report we evaluate the opportunities for regional diversification in Europe over the
last decade. We use microdata from the European Labour Force Survey to empirically test
the entry and exit of occupational specializations at the regional level.Our results show that
NUTS 2 regions are more likely to diversify into new occupations that are related to their
existing local labour markets. So, the new opportunities for diversification are pathdependent, that is, they depend on the previous (occupational) production structure of the
regions. Relatedness is especially important for diversifying toward complex occupations,
thus increasing the potential economic benefits of the regions. However, there are
significant regional heterogeneities in this related diversification process. Relatedness is
positively associated with occupational specialization, but it loses strength as GDP per
capita increases among European regions. Finally, we point out some policy orientations
that can guide the paths of occupational diversification for European regions.
last decade. We use microdata from the European Labour Force Survey to empirically test
the entry and exit of occupational specializations at the regional level.Our results show that
NUTS 2 regions are more likely to diversify into new occupations that are related to their
existing local labour markets. So, the new opportunities for diversification are pathdependent, that is, they depend on the previous (occupational) production structure of the
regions. Relatedness is especially important for diversifying toward complex occupations,
thus increasing the potential economic benefits of the regions. However, there are
significant regional heterogeneities in this related diversification process. Relatedness is
positively associated with occupational specialization, but it loses strength as GDP per
capita increases among European regions. Finally, we point out some policy orientations
that can guide the paths of occupational diversification for European regions.
| Original language | English |
|---|---|
| Publisher | Papers in Evolutionary Economic Geography (PEEG) |
| Number of pages | 100 |
| Volume | 23.02 |
| Publication status | Published - Jan 2023 |
Funding
This project received funding from the European Union’s Horizon 2020 Research and Innovation Programme under Grant Agreement No. 101004703.