EU Spending Effects on Regional Well-Being

This chapter examines the effects of EU spending on regional well-being. In doing so, the chapter tests the observable implications of the theory put forward in Chapter 3 about the conditions under which EU spending can enhance well-being. It makes the case for using a quantitative approach, which is uniquely suitable for estimating EU spending effects because it takes into account potential endogenous effects, temporal factors and structural breaks. proceeds with an explanatory analysis of. Drawing on the quantitative dataset introduced in Chapter 4, this chapter presents and discusses two main results. The first result is that EU social spending enhances employment and unemployment outcomes, but only in the rich regions. By contrast, there is no robust evidence of social spending effects on youth activity or public health. The second main finding is that EU social investments exacerbate income inequality in poor regions.