Authors: Daniel Gros, Roberto Musmeci, Marta Pilati
Published: April, 2018

This contribution analyses the state of regional convergence in the European context. It finds that different country groups have had quite different experiences following the financial crisis and that in most cases there has been little convergence across regions within countries. More importantly, the seemingly permanent differences in regional per capita income are for some countries mainly the result of differences in occupation ratios. Regional differences in productivity (or income per worker) are relatively uniform across the larger member states and in all cases smaller than regional differences in per capita income. Convergence might thus be easier to achieve if cohesion and regional policies were to focus not only on productivity, but also on employment creation.

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