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Over the last two decades, regional inequalities have remained significant, and have grown within many OECD countries. Impacts of recent shocks, including the COVID-19 pandemic and Russia's war of aggression against Ukraine, and megatrends, threaten to widen these gaps between regions, deepening the longstanding geography of inequalities. This report, Regional Outlook 2023 - The Longstanding Geography of Inequalities, provides novel evidence on the evolution of inequalities between OECD regions across several dimensions (including income and access to services) over the past twenty years. It sheds light on the role of productivity to address regional inequalities. It also looks at the costs of regional inequalities, which can weaken the economic, social, and political fabric, and lead to a geography of discontent. Furthermore, the report explores forward-looking scenarios for regions as part of ongoing reflections to future-proof regional development policy and secure social cohesion. Finally, it provides a policy roadmap to guide governments' efforts to reduce persistent regional inequalities now and in the future.

Regional economic disparities.

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February 1997 No. Export-led industrialization concentrated in Java-Bali has also helped change the labor market and income growth outside Java-Bali. Improved wages and the shift of labor out of agriculture partly reflect the government's continuing support for infrastructure and human resource development in the Outer Island provinces. Indonesia's labor markets, especially on the island of Java, have been transformed in the past 30 years, especially since liberalization picked up speed in the mid-1980s. Manning explores the regional dimensions of that transformation. In some other countries, when labor markets have changed, disparities among regions have occurred. But in Indonesia, when the employment structure changed markedly (especially after 1987), real wages rose not only in Java-Bali but also in most Outer Island provinces. Wages have grown more rapidly in Java-Bali, but labor in the Outer island provinces has enjoyed large gains, the result of the rapid economic growth that came during deregulation. Among Outer Island provinces, Northern Sumatra and the poorer Eastern Island provinces have experienced substantial growth, while the Kalimantan provinces have lagged in manufacturing employment and wages. Labor market outcomes have also been less favorable in land-abundant provinces that received many assisted migrants during Indonesia's earlier oil boom. Manning concludes that export-led industrialization concentrated in Java-Bali has helped change the labor market and income growth outside Java-Bali also. Improved wages and the shift of labor out of agriculture also partly reflect the government's continuing support for infrastructure and human resource development in the Outer Island provinces. This paper - a product of the Indonesia Policy and Operations Division, Country Department III, East Asia and Pacific - is part of a larger study of Indonesia's labor market.

Regional economic disparities.

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Regional economic disparities --- Sales

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"The author analyzes regional labor market disparities in transition by presenting some data and summarizing existing literature. He finds that large and persistent regional labor market disparities developed in virtually all transition countries and that there is some evidence of polarization. Differences in starting conditions and market access seem to be the major reasons for regional divergence in transition. Furthermore, regional wages are only slightly more flexible than in many European Union labor markets, interregional migration is low, and capital seems to move toward high wage and low unemployment urban centers rather than to the most backward regions. Policy should thus take a long-run perspective on the existing regional disparities, focus on removing barriers to mobility, review existing institutions for implementing regional policy, and aim at a close coordination of regional and labor market policy instruments. "--World Bank web site.

Labor market. --- Regional economic disparities.

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Competition --- Entrepreneurship --- Regional economic disparities