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Productivity and employment dynamics: new evidence from Italian regions

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  • Bianca Biagi

    (University of Sassari and CRENoS)

  • Maria Gabriela Ladu

    (University of Sassari and CRENoS)

Abstract

When productivity growth accelerates job destruction and job creation occur simultaneously. However, what effect this has on the whole economy depends on whether job creation or destruction dominates. We investigate what occurred in Italy from 1977–2003, a time when some labour market reforms were introduced, creating increased flexibility. We also investigate if there were any systematic regional differences in the employment or productivity dynamics and whether these dynamics experienced any sort of spatial externalities. The findings indicate that overall, the effect of job destruction prevailed and that the labour market reforms had a negative impact on employment.

Suggested Citation

  • Bianca Biagi & Maria Gabriela Ladu, 2018. "Productivity and employment dynamics: new evidence from Italian regions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 313-336, August.
  • Handle: RePEc:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0103-9
    DOI: 10.1007/s40888-018-0103-9
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    More about this item

    Keywords

    Total factor productivity; Job creation; Job destruction; Labor market reforms; Spatial externalities;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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