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Divergence and long-run equilibria in Italian regional unemployment

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Author Info
Mauro Costantini
Claudio Lupi

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

Volume (Year): 13 (2006)
Issue (Month): 14 (November)
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. Adolfo Maza & José Villaverde, 2004. "Regional disparities in the EU: mobility and polarization," Applied Economics Letters, Taylor and Francis Journals, vol. 11(8), pages 517-522, June. [Downloadable!] (restricted)
  2. 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. SEGeS. [Downloadable!]
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  3. 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. [Downloadable!] (restricted)
  4. Moon, H.R. & Perron, B., 2002. "Testing for a Unit Root in Panels with Dynamic Factors," Cahiers de recherche 18-2002, Centre interuniversitaire de recherche en économie quantitative, CIREQ. [Downloadable!]
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  5. 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.
  6. Ron Martin, 1997. "Regional Unemployment Disparities and their Dynamics," Regional Studies, Taylor and Francis Journals, vol. 31(3), pages 237-252, May. [Downloadable!] (restricted)
  7. 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.
  8. T. Mora, 2004. "Role of mobility in evolution of disparities: European regions evidence," Applied Economics Letters, Taylor and Francis Journals, vol. 11(5), pages 325-328, April. [Downloadable!] (restricted)
  9. Brunello, Giorgio & Lupi, Claudio & Ordine, Patrizia, 2001. "Widening differences in Italian regional unemployment," Labour Economics, Elsevier, vol. 8(1), pages 103-129, January. [Downloadable!] (restricted)
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