TheConvergence of the Italian Regions and Unemployment: Theory and Evidence
AbstractWe explore the links between the halt of the convergence process of Italian regions at the beginning of the 1970s and the increase in regional unemployment dispersion. We consider a neoclassical exogenous growth model with an imperfect labor market and show that during the transitional dynamics the imperfections of the labor market negatively influence the output growth rate. In particular, the model implies that centralized bargaining is likely to set a national minimum wage that is too high with respect to the labor productivity of the less developed regions, resulting in a negative impact on their per capita output growth. We test the implications of the model on a regional panel data set using the GMM framework. Both our market distortion measure and the unemployment rate are found to significantly lower the growth rate of per capita output. Copyright 2002 Blackwell Publishers Inc.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Regional Science.
Volume (Year): 42 (2002)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Aiello, Francesco & Cardamone, Paola, 2010.
"Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata,"
22572, University Library of Munich, Germany.
- Aiello, Francesco & Cardamone, Paola, 2012. "Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 205-220.
- Francesco Aiello & Paola Cardamone, 2010. "Regional Economic Divide And The Role Of Technological Spillovers In Italy. Evidence From Microdata," Working Papers 201010, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
- Aiello, Francesco & Scoppa, Vincenzo, 2008. "Convergence and Regional Productivity Divide in Italy: Evidence from Panel Data," MPRA Paper 17343, University Library of Munich, Germany.
- Mauro, Luciano, 2004. "The macroeconomics of Italy: a regional perspective," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 927-944, December.
- Succurro, Marianna, 2014. "Intangible assets finance: a complementary or substitution effect between external and internal channels? Evidence from the Italian divide," MPRA Paper 57247, University Library of Munich, Germany.
- Matteo Lanzafame, 2005.
"Economic Structure, Technology Diffusion and Convergence: The Case of the Italian Regions,"
Studies in Economics
0507, Department of Economics, University of Kent.
- Matteo Lanzafame, 2005. "Economic structure, technology diffusion and convergence - the case of the Italian regions," ERSA conference papers ersa05p323, European Regional Science Association.
- Aiello, Francesco & Pupo, Valeria, 2009.
"Structural Funds and Economic Divide in Italy,"
17853, University Library of Munich, Germany.
- Francesco Aiello & Valeria Pupo, 2009. "Structural Funds And Economic Divide In Italy," Working Papers 200914, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
- Aiello Francesco & Pupo Valeria, 2011. "Structural Funds and Economic Divide in Italy," ERSA conference papers ersa10p136, European Regional Science Association.
- Pupo Valeria & Aiello Francesco, 2009. "L'impatto della politica regionale dell'Unione Europea. Uno studio sulle regioni italiane," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 421-454.
- Dow, Sheila & Montagnoli, Alberto & Napolitano, Oreste, 2009.
"Interest rates and convergence across Italian regions,"
Stirling Economics Discussion Papers
2009-13, University of Stirling, Division of Economics.
- Sheila Dow & Alberto Montagnoli & Oreste Napolitano, 2012. "Interest Rates and Convergence across Italian Regions," Regional Studies, Taylor & Francis Journals, vol. 46(7), pages 893-905, October.
- Silvia Dal Bianco, 2009. "A Reassessment of Italian Regional Convergence through a Non-Parametric Approach," Quaderni di Dipartimento 099, University of Pavia, Department of Economics and Quantitative Methods.
- Francesco Aiello & Valeria Pupo, 2009. "L’Impatto Dei Fondi Strutturali In Italia," Working Papers 200901, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
- Aiello, Francesco & Pupo, Valeria, 2009.
"Capacità di gestione, efficienza istituzionale e impatto dei Fondi Strutturali in Italia
[The Impact of Structural Funds in Italy]," MPRA Paper 14429, University Library of Munich, Germany.
- Aiello, Francesco & Pupo, Valeria, 2012. "Structural funds and the economic divide in Italy," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 403-418.
- Stefano Magrini, 2007. "Analysing Convergence through the Distribution Dynamics Approach: Why and how?," Working Papers 2007_13, Department of Economics, University of Venice "Ca' Foscari".
- Rosa Bernadini Papalia & Silvia Bertarelli, 2013. "Identification and Estimation of Club Convergence Models with Spatial Dependence," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(6), pages 2094-2115, November.
- Emiliano Giudici & André Mollick, 2008. "Convergence in the Eastern Caribbean States," The Annals of Regional Science, Springer, vol. 42(4), pages 893-909, December.
- Marcela González Rivas, 2007. "The effects of trade openness on regional inequality in Mexico," The Annals of Regional Science, Springer, vol. 41(3), pages 545-561, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.