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EMU and Regional Labor Market Disparities in Euroland

J. R. Cuadrado-Roura, M. Parellada (eds.), Regional Convergence in the European Union. Berlin/Heidelberg/New York: Springer, pp. 339-352

The debate about European monetary union has for a long time been dominated by questions of fiscal convergence and the macroeconomic stability of the euro. Relatively little attention has been given to the labor market effects of EMU, although labor market performance is likely to be crucial for the long-term success or failure of EMU. In this paper we focus on the question how EMU might affect the future performance of European labor markets and discuss ways of coping with the adjustment requirements in potential problem regions of the euro area.

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