Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265371 
Year of Publication: 
2022
Series/Report no.: 
GLO Discussion Paper No. 1188
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
The digital transformation is an important driver of long-run productivity growth and, as such, it has the potential to promote a more inclusive and sustainable growth. However, digital capabilities, crucial to develop and govern new digital technologies, are unevenly distributed across European regions increasing the risk of divergence and polarization. By taking advantage of a set of original indicators capturing the level of digital skills in the regional workforce, this work analyzes the factors shaping the process of digital skill accumulation in the EU over the period 2011-2018. Relying on transition probability matrices and dynamic random effects probit models, we provide evidence of a strong and persistent regional polarization in the adoption and deployment of digital skills. Further, we investigate whether European Funds (European Regional Development Fund, Cohesion Funds, and European Social Funds) are capable to shape the digitalization process and to favor regional convergence.
Subjects: 
Digital transition
Skills
Labour markets
Persistence
Regional development
EU policies
JEL: 
O14
O30
O38
Document Type: 
Working Paper

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