We use a spatial dynamic computable general equilibrium model incorporating a macroeconomic measure of educational mismatch and endogenous labour participation for three different educational groups. Our objective is to assess the impact of the European Social Fund’s investments in labour productivity on both regional macroeconomic educational mismatch and employment. The analysed labour market interventions generate positive long-run effects on GDP and employment in all regions, with interesting implications for educational mismatch. Raising the productivity of the low educated workers reduces mismatch, while targeting the medium educated leads to relatively smaller reductions. Interventions targeting the highly educated result in an increase in mismatch, although they generate larger increases in GDP, implying the existence of a trade-off. Its intensity depends on the initial regional economic conditions as well as on the size of the policy interventions.
CHRISTOU Tryfonas;
GARCIA RODRIGUEZ Abian;
LAZAROU Nicholas;
SAKKAS Stylianos;
SALOTTI Simone;
2026-08-25
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
JRC135950
1469-5758 (online),
https://www.tandfonline.com/doi/full/10.1080/09535314.2026.2616508,
https://publications.jrc.ec.europa.eu/repository/handle/JRC135950,
10.1080/09535314.2026.2616508 (online),
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