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Job Creation in Italy: Geography, Determinants and Perspectives

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  • Giovanni Peri

    ()
    (Bocconi University)

  • Alejandro Cunat

    ()
    (London School of Economics)

Abstract

The extremely large disparities in employment rates across Italian regions, and the bad performance of the Italian economy in terms of job creation in the 80's and early 90's make job creation a top-priority in the economic policy agenda. This paper uses data on employment from 784 Local Labor Systems (LLS's) covering the whole Italian territory to analyze job creation and its covariates for the 1981-1996 period. Local agglomeration economies, in particular input-output linkages, social characteristics, in particular the crime rate, and infrastructure growth are found to be important determinants of employment growth across Italian LLS's. Using these estimates and data relative to 1996, we assess the potential for job creation in the LLS's for the next decade. The Northeast still proves to be the area with strongest potentials, while in the South, Abruzzi and Northern Campania are the areas best equipped for filling their gap with the North.

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Bibliographic Info

Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 60 (2001)
Issue (Month): 1 (June)
Pages: 43-74

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Handle: RePEc:gde:journl:gde_v60_n1_p43-74

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Related research

Keywords: local agglomeration economies; employment growth; Italian regions;

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References

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  1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
  2. Marimon, Ramon & Zilibotti, Fabrizio, 1998. "'Actual' versus 'virtual' employment in Europe Is Spain different?," European Economic Review, Elsevier, vol. 42(1), pages 123-153, January.
  3. Giovanni Peri & Alejandro Cunat, 2001. "Job Creation in Italy: Geography, Determinants and Perspectives," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 60(1), pages 43-74, June.
  4. Lucio Picci, 1999. "Productivity and Infrastructure in the Italian Regions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 329-353, December.
  5. Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
  6. Jonathan Temple & Paul A. Johnson, 1998. "Social Capability And Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 965-990, August.
  7. Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 297-318, August.
  8. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
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Cited by:
  1. Karoly Fazekas & Jeno Koltay (ed.), 2004. "The Hungarian Labour Market 2004," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences, number 2004, January.
  2. Giovanni Peri & Alejandro Cunat, 2001. "Job Creation in Italy: Geography, Determinants and Perspectives," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 60(1), pages 43-74, June.
  3. Karoly Fazekas, 2003. "Effects of foreign direct investment on the performance of local labour markets - The case of Hungary," Budapest Working Papers on the Labour Market 0303, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  4. Philipp Ehrl, 2011. "Agglomeration economies with consistent productivity estimates," Working Papers 113, Bavarian Graduate Program in Economics (BGPE).
  5. Kowalewski, Julia, 2012. "Inter-industrial relations and sectoral employment development in German regions," HWWI Research Papers 127, Hamburg Institute of International Economics (HWWI).
  6. Julia Kowalewski, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(4), pages 486-504, July.

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