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Do “good neighbors” enhance regional performances in including disabled people in the labour market? A spatial Markov chain approach

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  • Agovino, Massimiliano
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    Abstract

    The purpose of this study is to examine whether the performance of regions in providing employment of disabled people according to Law 68/99 can be affected by the performance of neighbouring regions. Hence, we propose a two-step analysis focusing on the Italian regions for the years 2000-2009. In the first step, we verify by means of the Stochastic Frontier Approach that the regions of Central and Northern Italy are more efficient in the matching process between demand and supply of jobs for disabled people than the regions of Southern Italy. Then, the efficiency results are analyzed using a Markov Spatial Transition Matrix in order to provide insights into the transitions of regions between efficiency levels, taking their local context into account. The results of this analysis show that good neighbors are important in promoting the improvement of the performance of the regions. However, the effects produced by bad neighbors should not be underestimated, especially when they are concentrated in an area of the country and have a time-space persistence. The effect of a persistent dualism on the performance of the regions with respect to the application of Law 68/99 is a problem that must be seriously considered by policy makers; especially when the regions with a low efficiency score are surrounded by neighbors with poor efficiency score and show an unhealthy poorly performing labour market.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 47038.

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    Date of creation: May 2013
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    Handle: RePEc:pra:mprapa:47038

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    Keywords: Disabled People; Public Policy; Non-Labour Market Discrimination; Stochastic Frontier Approach; Spatial Markov Chain.;

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    1. Daniela Schettini & Carlos Roberto Azzoni & Antonio P√°ez, 2011. "Neighborhood and Efficiency in Manufacturing in Brazilian Regions: a Spatial Markov Chain Analysis," ERSA conference papers ersa10p1052, European Regional Science Association.
    2. Daron Acemoglu & Joshua Angrist, 1998. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," NBER Working Papers 6670, National Bureau of Economic Research, Inc.
    3. Maria Francesca Cracolici & Miranda Cuffaro & Peter Nijkamp, 2007. "Geographical Distribution of Unemployment: An Analysis of Provincial Differences in Italy," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 38(4), pages 649-670.
    4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
    5. Jones, Melanie K. & Latreille, Paul L. & Sloane, Peter J., 2003. "Disability, Gender and the Labour Market," IZA Discussion Papers 936, Institute for the Study of Labor (IZA).
    6. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
    7. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    8. Jones, Melanie K. & Latreille, Paul L. & Sloane, Peter J., 2007. "Disability and Work: A Review of the British Evidence," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 473-498, Abril.
    9. Mark Partridge & Dan Rickman, 1997. "The Dispersion of US State Unemployment Rates: The Role of Market and Non-market Equilibrium Factors," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 593-606.
    10. Melanie K. Jones & Peter J. Sloane, 2010. "Disability and Skill Mismatch," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 101-114, 09.
    11. M. Agovino & A. Rapposelli, 2013. "Inclusion of disabled people in the Italian labour market: an efficiency analysis of law 68/1999 at regional level," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(3), pages 1577-1588, April.
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