The macroeconomic implications of the European Social Fund: An impact assessment exercise using the RHOMOLO model

We evaluate the macroeconomic impacts of the European Social Fund (ESF) across the EU at both the national and the regional level. To this end, we use the RHOMOLO dynamic spatial Computable General Equilibrium model developed by the JRC for territorial impact assessment. We find out that the contribution of ESF funds is important for speeding up the economic recovery taking place in most European economies, with the ESF generating economic benefits which are higher than its costs by 2030. However, GDP and employment growth are not the main objectives of the policy. Given the wage benefits and productivity enhancing effects associated with the ESF, its distributional effects are also of interest.