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Training and the Density of Economic Activity: Evidence from Italy

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  • Brunello, Giorgio

    ()
    (University of Padova)

  • De Paola, Maria

    ()
    (University of Calabria)

Abstract

We use a search and matching model to investigate the economic relationship between training and local economic conditions. We identify two aspects of this relationship going in opposite directions: on the one hand, the complementarity between local knowledge spillovers and training generates a positive correlation with local density; on the other hand, the negative influence of higher wages in denser areas reduces training. Overall the relationship can be either positive or negative, depending on the relative strength of the two effects. Our empirical analysis, based on a sample of Italian firms, shows that training is lower in provinces with higher labor market density, measured as the number of employees per squared kilometer. This empirical result confirms previous evidence by Brunello and Gambarotto (2004) based on UK data.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1173.

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Length: 45 pages
Date of creation: Jun 2004
Date of revision:
Publication status: published in: Labour Economics, 2008, 15 (1), 118-140
Handle: RePEc:iza:izadps:dp1173

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Keywords: Italy; training; local labor markets;

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Cited by:
  1. Muehlemann, Samuel & Wolter, Stefan C., 2007. "Regional effects on employer-provided training: Evidence fromapprenticeship training in Switzerland," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 135-147.
  2. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
  3. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo Group Munich.
  4. Uschi Backes-Gellner & Johannes Mure, 2005. "The Skill-Weights Approach on Firm Specific Human Capital: Empirical Results for Germany," Working Papers 0056, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Apr 2005.
  5. Giorgio Brunello & Francesca Gambarotto, 2006. "Do Spatial Agglomeration and Local Labor Market Competition Affect Employer - Provided Training? Evidence from the UK," "Marco Fanno" Working Papers 0018, Dipartimento di Scienze Economiche "Marco Fanno".
  6. repec:iab:iabzaf:v:40:i:2/3:p:135-147 is not listed on IDEAS
  7. Giorgio Brunello, 2006. "Workplace Training and Labour Market Institutions in Europe," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 4(4), pages 33-41, 02.

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