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value of the interquartile range of both the periphery (-19.0) and the island periphery (-10.8) regions
over the period 1990-1997. The largest reduction in the sample variance over this period occurs in
the periphery (-353.3) and the adjacent (-194.4) regions. This suggests that the largest convergence of
per capita incomes occurred in the periphery regions, followed by the adjacent regions, with a minor
contribution by the core regions. The change in the relative values of the coefficient of variation
supports this conclusion.
The outcome of the empirical analysis indicates that both the EU average level of per capita
income, and that of the individual CAP region types, has increased over the period under
consideration. Furthermore, it is also evident that a difference exists between the average levels of per
capita income between the CAP regions. However, this difference is declining due to the convergence
of per capita income between the periphery and the adjacent regions. This convergence of per capita
incomes can only be the result of increased employment in the periphery regions, and provides a
reason for the mitigation of out-migration from these regions.
8.3.3 The Structure of Employment in the CAP Regions
The structure of employment is defined as the percentage distribution of the labour force
employed in agriculture, manufacturing, and services. The regional employment structure for the years
1990 and 1998 is presented in Table 8. In general, the average EU structure of employment changed
between 1990 and 1998. During this period, there was a relocation of the labour force out of
employment in the agricultural and industrial sectors and into the service sector. This pattern of
relocation is consistent for all CAP region types.
The new economic geography trade theory receives support from the evidence that industrial
employment is concentrated in the core regions, and agriculture employment in the periphery regions
(Krugman, 1991a, 1991b). The highest percentage of industrial employment is located in the core
regions and the lowest in the island periphery regions. It is also evident, that agricultural employment
is lowest in the core regions and highest in the island periphery regions. Agricultural employment