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Regional Disparities in
Europe
Ravi Balakrishnan, Christian Ebeke, Melih Firat,
Davide Malacrino, and Louise Rabier
WP/22/ 198
IMF Working Papers describe research in
progress by the author(s) and are published to
elicit comments and to encourage debate.
The views expressed in IMF Working Papers are
those of the author(s) and do not necessarily
represent the views of the IMF, its Executive Board,
or IMF management.
2022
SEP
© 2022 International Monetary Fund WP/22/ 198
IMF Working Paper
European Department
Regional Disparities in Europe
Prepared by Ravi Balakrishnan, Christian Ebeke, Melih Firat, Davide Malacrino, and Louise Rabier
Authorized for distribution by Ravi Balakrishnan
September 2022
IMF Working Papers describe research in progress by the author(s) and are published to elicit
comments and to encourage debate. The views expressed in IMF Working Papers are those of the
author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
ABSTRACT: While the level of disparities across regions in 10 advanced European economies studied in this
paper mostly reflects productivity gaps, the increase since the Great Recession has resulted from diverging
unemployment rates. Following the pandemic, this could be further exacerbated given teleworkability rates are
lower in poorer regions than in high-income regions, making them ex-ante more vulnerable to the pandemic’s
likely material impact on the prevalence of remote work. Preliminary evidence from 2020 confirms that regional
disparities between countries increased during 2020. A further concern is that the pandemic might accelerate
the automation of jobs acro
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