European Subsidies and their Impact on Interregional Migration

Abstract

The article deals with the impact assessment of drawn public resources from the European funds on the interregional migration rate of labour force. The aim of this article is to assess the level of drawing subsidies from the European Union funds for projects that support employment and increase the potential of labor force. The article focuses on a relationship between the amount of public funds used in individual regions and the interregional migration rate in the Czech Republic. The analysis uses the overview of funded projects between the years 2007 – 2015. Firstly, it is searched the relationship between the level of drawing subsidies and the average increment or average decrease in labor force in regions. Subsequently, are identified the regions with the highest rate of recovered funds for projects supporting the human capital. In these regions, it is then through the differences-in-differences method detected the deviation trend in relation to the migration trend in the period 2001 – 2006, and also, in relation to the reference group, which includes all the other regions, which are not characterized by so high rate in drawing subsidies.