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Sectoral Shifts, Diversification and Regional Unemployment: Evidence from Local Labour Systems in Italy

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Author Info

  • Basile, Roberto

    ()
    (University of Naples II)

  • Girardi, Alessandro

    ()
    (ISTAT, Rome)

  • Mantuano, Marianna

    ()
    (ISTAT, Rome)

  • Pastore, Francesco

    ()
    (University of Naples II)

Abstract

Using Local Labour Systems (LLSs) data, this work aims at assessing the effects of sectoral shifts and industry specialization patterns on regional unemployment in Italy over the years 2004-2008, when huge worker reallocation caused by changes in the international division of labour occurred. Italy represents an interesting case study because of the high degree of spatial heterogeneity in local labour market performance and the well-known North-South divide. Furthermore, the presence of strongly specialized LLSs (Industrial Districts, IDs) allows us to test whether IDs perform better than highly diversified urban areas thanks to the effect of agglomeration economies, or vice versa. Building on a semiparametric spatial auto-regressive framework, our empirical investigation documents that sectoral shifts and the degree of specialization exert a negative role on unemployment dynamics. By contrast, highly diversified areas turn out to be characterized by better labour market performances.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6197.

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Length: 42 pages
Date of creation: Dec 2011
Date of revision:
Publication status: published in: Empirica, 2012, 39 (4), 525-545
Handle: RePEc:iza:izadps:dp6197

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Keywords: sectoral shift; diversification; spatial dependence; unemployment; nonparametrics;

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Citations

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Cited by:
  1. Francesco Pastore, 2012. "Primum vivere . . . industrial change, job destruction and the geographical distribution of unemployment," IZA Journal of European Labor Studies, Springer, Springer, vol. 1(1), pages 1-15, December.
  2. Pastore, Francesco, 2013. "Primum vivere… Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute for the Study of Labor (IZA).
  3. Muhammad Rashid Ansari & Chiara Mussida & Francesco Pastore, 2014. "Note on Lilien and modified Lilien index," Stata Journal, StataCorp LP, StataCorp LP, vol. 14(2), pages 398-406, June.
  4. Mussida, Chiara & Pastore, Francesco, 2012. "Is There a Southern-Sclerosis? Worker Reallocation and Regional Unemployment in Italy," IZA Discussion Papers 6954, Institute for the Study of Labor (IZA).

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