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Benjamin Hilgenstock and Zsoka Koczan

( Figure 6 ). Figure 6. Changes in Labor Force Participation Rates, 2000–2016 (Percentage points) Sources: Eurostat; and authors’ calculations. Note: Regions in white denote regions for which data was not available. Initial population density appears to be positively correlated with changes in labor force participation ( Figure 7 ). Participation rates increased more (or declined less) in urban regions, while they declined more (or increased less) in rural regions—a pattern similar to that observed in the United States (see Hilgenstock and Koczan 2018

Benjamin Hilgenstock and Zsoka Koczan
The paper examines the evolution and drivers of labor force participation in European regions, focusing on the effects of trade and technology. As in the United States, rural regions within European countries saw more pronounced declines (or smaller increases) in participation than urban regions. Unlike in the United States, however, trade and technology, captured here using novel measures of initial exposures to routinization and offshoring, did not result in detachment from the workforce in European regions. Instead, regions with high initial exposures to routinization and offshoring experienced so-far larger increases in participation, likely driven by an added second worker effect.