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Is There a Southern-Sclerosis? Worker Reallocation and Regional Unemployment in Italy

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Author Info

  • Mussida, Chiara

    ()
    (Università Cattolica del Sacro Cuore)

  • Pastore, Francesco

    ()
    (University of Naples II)

Abstract

Theoretical reasoning justifies different signs of the relationship between the local variation in unemployment rates and the extent of workers reallocation. This paper aims to test different theoretical hypotheses in the case of Italy by using the longitudinal files of the Italian labour force survey over the years from 2004 to 2010. We find that labour turnover, as well as inflows and outflows separately, differ significantly at the regional level and are ceteris paribus positively related to the unemployment rate. In addition, we study the determinants of labour turnover across NUTS1 and NUTS2 geographical units and find that it correlates positively with structural change, as measured by the Lilien index, and negatively with the degree of industrial concentration, as measured by the Herfindahl index. Once we control for sectoral shifts and industrial concentration, we note a reduction of between 25 and 40% of the regional gap in labour turnover rates. This general conclusion is robust to the use of different control variables.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6954.

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Length: 34 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6954

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Keywords: regional unemployment; labour turnover; labour reallocation; structural change;

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References

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  1. Roberto Basile & Alessandro Girardi & Marianna Mantuano & Francesco Pastore, 2011. "Sectoral Shifts, Diversification and Regional Unemployment. Evidence From Local Labour Systems in Italy," WIFO Working Papers 411, WIFO.
  2. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  3. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, Octomber.
  4. Eriksson, Stefan & Lagerström, Jonas, 2004. "Competition between employed and unemployed job applicants: Swedish evidence," Working Paper Series 2004:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Andrew Newell & Francesco Pastore, 2006. "Regional Unemployment and Industrial Restructuring in Poland," Eastern European Economics, M.E. Sharpe, Inc., vol. 44(3), pages 5-28, May.
  6. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, 02.
  7. Mario Fortin & Abdelkrim Araar, 1997. "Sectoral shifts, stock market dispersion and unemployment in Canada," Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 829-839.
  8. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number marshall1890.
  9. repec:ebl:ecbull:v:28:y:2003:i:25:p:a25 is not listed on IDEAS
  10. Berg Andrew, 1994. "Does Macroeconomic Reform Cause Structural Adjustment? Lessons from Poland," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 376-409, June.
  11. Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute for the Study of Labor (IZA).
  12. Chiarini, Bruno & Piselli, Paolo, 2000. "Unemployment, Wage Pressure and Sectoral Shifts: Permanent and Temporary Consequences of Intersectoral Shocks," Journal of Policy Modeling, Elsevier, vol. 22(7), pages 777-799, December.
  13. Floro Ernesto Caroleo & Francesco Pastore, 2010. "Structural Change and Labour Reallocation Across Regions: A Review of the Literature," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 2, pages 17-47 AIEL - Associazione Italiana Economisti del Lavoro.
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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, vol. 1(1), pages 1-15, December.
  2. Muhammad Rashid Ansari & Chiara Mussida & Francesco Pastore, 2014. "Note on Lilien and modified Lilien index," Stata Journal, StataCorp LP, vol. 14(2), pages 398-406, June.
  3. 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).

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