To me, the most relevant quote is:
> Subsidising IT adoption actually lowers southern productivity even further. Likewise, subsidising education has negative effects, as it is effectively becomes a transfer to the north through high-skilled migration. These surprising results are due to the fact that, in our model, low IT adoption and low education are a symptom, rather than the cause, of low productivity growth in southern Europe. Indeed, given management efficiency, southern workers and firms behave optimally. There is no further room for improvement.
As a citizen of a Southern EU country, this feels painfully true. Having worked a year in the Benelux, returning here just heightened that sense: the culture of hiding information, trading influence and promoting mediocrity. And I fear those EU funds for creating startups will just be consumed by the forces, being used by founders who have only known this reality. Working abroad beforehand should be, if not mandatory, at least strongly encouraged.
> Subsidising IT adoption actually lowers southern productivity even further. Likewise, subsidising education has negative effects, as it is effectively becomes a transfer to the north through high-skilled migration. These surprising results are due to the fact that, in our model, low IT adoption and low education are a symptom, rather than the cause, of low productivity growth in southern Europe. Indeed, given management efficiency, southern workers and firms behave optimally. There is no further room for improvement.
As a citizen of a Southern EU country, this feels painfully true. Having worked a year in the Benelux, returning here just heightened that sense: the culture of hiding information, trading influence and promoting mediocrity. And I fear those EU funds for creating startups will just be consumed by the forces, being used by founders who have only known this reality. Working abroad beforehand should be, if not mandatory, at least strongly encouraged.