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The Dynamics of Labour Productivity Across Italian Provinces: Convergence and Polarization

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  • Davide Fiaschi
  • Lisa Gianmoena
  • Angela Parenti

Abstract

This paper analyses the dynamics of labour productivity across Italian Provinces in the period 1995-2006. Inequality decreased but a clear pattern of polarization emerged, with the formation of a cluster of high-productive provinces in the North and Centre-West of Italy and a cluster of low-productive provinces in the South and in the Centre-East. The growth of employment exerted a negative impact on the growth of productivity, as well as the number of self-employers per inhabitants, and the degree of openness to trade. On the contrary the share of population with tertiary education had a positive impact. A core of provinces belonging to five regions (Lombardy, Veneto, Emilia-Romagna, Tuscany and Lazio) appears to benefit of a higher growth of productivity. This regional component favoured both inequality and polarization. On the contrary, the initial level of productivity decreased inequality but increased polarization.

Suggested Citation

  • Davide Fiaschi & Lisa Gianmoena & Angela Parenti, 2011. "The Dynamics of Labour Productivity Across Italian Provinces: Convergence and Polarization," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 209-240.
    • Handle: RePEc:mul:jqat1f:doi:10.1427/34972:y:2011:i:2:p:209-240
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    1. Adriana Di Liberto & Francesco Pigliaru & Roberto Mura, 2008. "How to measure the unobservable: a panel technique for the analysis of TFP convergence," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 343-368, April.
    2. Mario Forni & Sergio Paba, 2000. "The Sources of Local Growth: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(1), pages 1-49, April.
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    Cited by:

    1. Di Liberto, Adriana & Sideri, Marco, 2015. "Past dominations, current institutions and the Italian regional economic performance," European Journal of Political Economy, Elsevier, vol. 38(C), pages 12-41.
    2. Martino, Roberto, 2015. "Convergence and growth. Labour productivity dynamics in the European Union," Journal of Macroeconomics, Elsevier, vol. 46(C), pages 186-200.
    3. Silvia Dal Bianco, 2016. "Going clubbing in the eighties: convergence in manufacturing sectors at a glance," Empirical Economics, Springer, vol. 50(2), pages 623-659, March.

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    More about this item

    Keywords

    distribution dynamics; spatial dependence; output composition; entrepreneurial fabric; human capital; C21; R11; O47; O52.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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