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Labour flexibility, internal migration and productivity in Italian regions

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  • Calcagnini, Giorgio
  • Marin, Giovanni
  • Perugini, Francesco

Abstract

This paper provides an empirical analysis of the Italian total factor productivity (TFP) growth for the 1995-2012 period that takes into account the factors explaining cross-regional differences in productivity growth. We focus on the changes in the quality of labor caused by the increasing use of temporary workers and on the migration flows of human-capital, which almost unidirectionally moved from the Southern to the Northern-Centre regions. Empirical results provide evidence of a non-linearity (U-shaped) in the relationship between the use of temporary workers and TFP growth, which suggests that TFP growth in some Southern regions benefited from the increase in the share of temporary workers after the early 2000s, while regions in the Centre-North regions experienced an opposite effect, with the share of temporary workers being negatively related to TFP growth. Results also show that migration flows of qualified human capital had a positive impact on TFP growth in the regions of destinations, while the number of emigrants have a positive effect on the TFP growth in the regions of origin.

Suggested Citation

  • Calcagnini, Giorgio & Marin, Giovanni & Perugini, Francesco, 2021. "Labour flexibility, internal migration and productivity in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 308-320.
    • Handle: RePEc:eee:streco:v:57:y:2021:i:c:p:308-320
    DOI: 10.1016/j.strueco.2021.04.004
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    Keywords

    TFP; Italian regions; Labour market flexibility; Migration;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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