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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.

Suggested Citation

  • Mauro Costantini & Claudio Lupi, 2006. "Divergence and long-run equilibria in Italian regional unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 899-904.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:14:p:899-904
    DOI: 10.1080/13504850500425758
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    References listed on IDEAS

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    Cited by:

    1. Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2014. "In a Small Moment: Class Size and Moral Hazard in the Mezzogiorno," FBK-IRVAPP Working Papers 2014-04, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    2. Firouz Fallahi & Gabriel Rodríguez, 2011. "Convergence In The Canadian Provinces: Evidence Using Unemployment Rates," Documentos de Trabajo / Working Papers 2011-322, Departamento de Economía - Pontificia Universidad Católica del Perú.
    3. 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].
    4. Jushan Bai & Josep Lluís Carrion‐i‐Silvestre, 2013. "Testing panel cointegration with unobservable dynamic common factors that are correlated with the regressors," Econometrics Journal, Royal Economic Society, vol. 16(2), pages 222-249, June.
    5. 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.
    6. Bai, Jushan & Carrion-i-Silvestre, Josep Lluis, 2009. "Testing Panel Cointegration with Unobservable Dynamic Common Factors," MPRA Paper 35243, University Library of Munich, Germany.
    7. Joshua D. Angrist & Erich Battistin & Daniela Vuri, 2017. "In a Small Moment: Class Size and Moral Hazard in the Italian Mezzogiorno," American Economic Journal: Applied Economics, American Economic Association, vol. 9(4), pages 216-249, October.

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