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Sectoral shifts, diversification and regional unemployment: evidence from local labour systems in Italy

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  • Roberto Basile

    ()

  • Alessandro Girardi

    ()

  • Marianna Mantuano

    ()

  • Francesco Pastore

    ()

Abstract

Using Local Labour Systems (LLSs) data, this work aims at assessing the effects of sectoral shifts and industry specialization patterns on regional unemployment in Italy over the years 2004–2008. Italy represents an interesting case study because of the high degree of spatial heterogeneity in local labour market performance and the well-known North–South divide. Furthermore, the presence of strongly specialized LLSs (Industrial Districts, IDs) allows us to test whether IDs perform better than highly diversified urban areas thanks to the effect of agglomeration economies, or viceversa. Building on a semiparametric spatial auto-regressive framework, our empirical investigation documents that sectoral shifts and the degree of specialization exert a negative role on unemployment dynamics. By contrast, highly diversified areas turn out to be characterized by better labour market performances. Copyright Springer Science+Business Media New York 2012

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Bibliographic Info

Article provided by Springer in its journal Empirica.

Volume (Year): 39 (2012)
Issue (Month): 4 (November)
Pages: 525-544

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Handle: RePEc:kap:empiri:v:39:y:2012:i:4:p:525-544

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Web page: http://www.springerlink.com/link.asp?id=100261

Related research

Keywords: Unemployment; Sectoral shift; Diversification; Spatial dependence; Nonparametrics; C14; C21; L16; R23;

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Cited by:
  1. Muhammad Rashid Ansari & Chiara Mussida & Francesco Pastore, 2014. "Note on Lilien and modified Lilien index," Stata Journal, StataCorp LP, vol. 14(2), pages 398-406, June.
  2. Pastore, Francesco, 2013. "Primum vivere… Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute for the Study of Labor (IZA).
  3. Francesco Pastore, 2012. "Primum vivere . . . industrial change, job destruction and the geographical distribution of unemployment," IZA Journal of European Labor Studies, Springer, vol. 1(1), pages 1-15, December.
  4. Mussida, Chiara & Pastore, Francesco, 2012. "Is There a Southern-Sclerosis? Worker Reallocation and Regional Unemployment in Italy," IZA Discussion Papers 6954, Institute for the Study of Labor (IZA).

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