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Italian Industrial Districts and the 2008 Recession

In: Agglomeration and Firm Performance

Author

Listed:
  • Giorgio Brunello

    (University of Padova, Cesifo, IZA and ROA)

  • Monica Langella

    (The London School of Economics and Political Science)

Abstract

Using a “difference-in-differences” approach, we show that the share of entrepreneurs in Italy declined more in industrial districts than in comparable labour markets during the 3 years following the 2008 recession. We have examined alternative explanations of this finding, thus concluding that it is consistent with the idea that intense social interactions typical of industrial districts act as a multiplier that amplifies the response to shocks. However, we cannot exclude that this may translate into a positive effect on employment as the flows from entrepreneurship to employment appear to be greater within industrial districts.

Suggested Citation

  • Giorgio Brunello & Monica Langella, 2018. "Italian Industrial Districts and the 2008 Recession," Advances in Spatial Science, in: Fiorenza Belussi & Jose-Luis Hervas-Oliver (ed.), Agglomeration and Firm Performance, pages 263-281, Springer.
  • Handle: RePEc:spr:adspcp:978-3-319-90575-4_15
    DOI: 10.1007/978-3-319-90575-4_15
    as

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