ABSTRACT. Working within the “distributional approach,” this research offers evidence of past and future polarization in aggregate regional labor productivity in EU-15. This finding is robust to alternative definitions of the spatial units used and does not appear to be the result of regional structural change. Spatial effects are found but are of rather localized nature. Turning to separate sectoral analyses suggests that past and future polarization in labor productivity across European regions may be associated with regional productivity differences in the services sectors.