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Training and economic density: Some evidence form Italian provinces

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  • Brunello, Giorgio
  • De Paola, Maria

Abstract

In this paper we use a search and matching model to investigate the economic relationship between training and local economic conditions. We identify two aspects of this relationship going in opposite directions: on the one hand, the complementarity between local knowledge spillovers and training generates a positive correlation between training and local density; on the other hand, higher wages and labor turnover in denser areas reduce training. Overall the relationship can be either positive or negative, depending on the relative strength of these two effects. Our empirical analysis, based on a sample of Italian firms, shows that training is lower in provinces with higher labor market density, measured as the number of employees per squared kilometer.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 1 (February)
Pages: 118-140

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Handle: RePEc:eee:labeco:v:15:y:2008:i:1:p:118-140

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References

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Cited by:
  1. Christoph Ehlert, 2013. "Did Customers Benefit from the Reorganisation of Customer Management in German Employment Agencies?," Ruhr Economic Papers 0462, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Picchio, Matteo & van Ours, Jan C., 2010. "Market Imperfections and Firm-Sponsored Training," IZA Discussion Papers 4988, Institute for the Study of Labor (IZA).
  3. Sylvi Rzepka & Marcus Tamm, 2013. "Local Employer Competition and Training of Workers," Ruhr Economic Papers 0463, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Francisca Bauer & Rudolf Hochholzer & Peter Huber, 2010. "Labour Turnover, Labour Market Density and In-house Training. Preliminary Results of the Vienna Employment and Skilling Monitor," WIFO Working Papers 367, WIFO.
  5. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers 162, University of Rome La Sapienza, Department of Public Economics.
  6. Carlos Eduardo Lobo e Silva & Geoffrey J.D. Hewings, 2010. "A Decisão sobre Investimento em Capital Humano em um Arranjo Produtivo Local (APL): Uma Abordagem Teórica," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 64(1), pages 67-80, March.
  7. Giuseppe Croce & Emanuela Ghignoni, 2012. "Employer-provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 339-353, May.
  8. Cécile Detang-Dessendre, 2008. "Accès à la formation continue en entreprise et caractéristiques des marchés locaux du travail," INRA UMR CESAER Working Papers 2008/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
  9. Muehlemann, Samuel & Wolter, Stefan C., 2011. "Firm-sponsored training and poaching externalities in regional labor markets," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 560-570.
  10. Giulio Cainelli & Andrea Fracasso & Giuseppe Vittucci Marzetti, 2012. "Spatial agglomeration and productivity in Italy: a panel smooth transition regression approach," Openloc Working Papers 1204, Public policies and local development.
  11. Cécile Détang-Dessendre, 2010. "Accès à la formation continue en entreprise et caractéristiques des marchés locaux du travail," Working Papers 43166, Institut National de la Recherche Agronomique, France.

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