EUROPEAN REGIONAL UNEMPLOYMENT DISPARITIES - CONVERGENCE OR PERSISTENCE

The reduction of regional unemployment disparities is a key prerequisi te for the achievement of socioeconomic cohesion in an integrated Euro pean Union. This article examines recent trends in the evolution of re gional unemployment disparities across a number of European member sta tes to determine whether and how far this reduction is occurring. Ther e is in fact little indication of any widespread convergence of region al unemployment rates. Instead, regional unemployment disparities acro ss Europe appear to be characterized by a high degree of persistence. Furthermore, the evidence suggests that this persistence is an equilib rium phenomenon rather than the result of prolonged disequilibrium in regional labour markets.