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Divergence and long-run equilibria in Italian regional unemployment

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  • Mauro Costantini
  • Claudio Lupi

Abstract

The Italian labour market is characterized by large and persistent regional unemployment differentials. This study uses recent panel unit root and cointegration tests to derive the long-run properties of the Italian regional unemployment disparities. The empirical evidence suggests that the stochastic convergence hypothesis can be rejected. However, the existence of a long-run equilibrium relationship among regional unemployment rates cannot be excluded. Some possible implications of this finding are sketched.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 13 (2006)
Issue (Month): 14 ()
Pages: 899-904

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Handle: RePEc:taf:apeclt:v:13:y:2006:i:14:p:899-904

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  1. Brunello, Giorgio & Lupi, Claudio & Ordine, Patrizia, 2001. "Widening differences in Italian regional unemployment," Labour Economics, Elsevier, vol. 8(1), pages 103-129, January.
  2. Giorgio Di Pietro & Peter Urwin, 2003. "Intergenerational mobility and occupational status in Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 10(12), pages 793-797.
  3. Ron Martin, 1997. "Regional Unemployment Disparities and their Dynamics," Regional Studies, Taylor & Francis Journals, vol. 31(3), pages 237-252.
  4. Adolfo Maza & Jose Villaverde, 2004. "Regional disparities in the EU: mobility and polarization," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 517-522.
  5. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April.
  6. Oxley, Les & Greasley, David, 1995. "A Time-Series Perspective on Convergence: Australia, UK and USA since 1870," The Economic Record, The Economic Society of Australia, vol. 71(214), pages 259-70, September.
  7. Brunello, Giorgio & Lupi, Claudio & Ordine, Patrizia, 2000. "Regional Disparities and the Italian NAIRU," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 146-77, January.
  8. T. Mora, 2004. "Role of mobility in evolution of disparities: European regions evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 11(5), pages 325-328.
  9. De Paola, Maria & Lupi, Claudio & Ordine, Patrizia, 2004. "Wage expectations in northern and southern Italian regions. An interpretation based on psychological and social factors," Economics & Statistics Discussion Papers esdp04016, University of Molise, Dept. EGSeI.
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Cited by:
  1. Bai, Jushan & Carrion-i-Silvestre, Josep Lluis, 2009. "Testing Panel Cointegration with Unobservable Dynamic Common Factors," MPRA Paper 35243, University Library of Munich, Germany.
  2. Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2014. "In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno," NBER Working Papers 20173, National Bureau of Economic Research, Inc.
  3. Firouz Fallahi & Gabriel Rodríguez, 2011. "Convergence In The Canadian Provinces: Evidence Using Unemployment Rates," Documentos de Trabajo 2011-322, Departamento de Economía - Pontificia Universidad Católica del Perú.
  4. Werner, Daniel, 2013. "New insights into the development of regional unemployment disparities," IAB Discussion Paper 201311, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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