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Employer-provided training and knowledge spillovers Evidence from Italian local labour markets

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  • Giuseppe Croce
  • Emanuela Ghignoni

Abstract

Following suggestions from theoretical and empirical literature on agglomeration and on social returns to education which emphasise the contribution of local knowledge spillovers to productivity and wage growth, this paper aims at uncovering the relationship between local human capital and training. Furthermore, we check the effects of other variables which measure some distinctive features of local labour markets, like the degree of specialization, average firms’ size, intensity of job turnover, economic density, employment in R&D activities and some other control variables. Our key-results are consistent with the prediction that training should be more frequent in areas where the aggregate educational level is higher. Moreover, interaction between local and individual human capital is positive and significant for those with an upper secondary educational attainment. These results have proved to be robust since they are not altered when different definitions of local human capital are adopted or different sub-samples are considered (with the exception of female workers). We also coped with the problem of omitted variables and spatial sorting, that could bias econometric results, by means of a two-step strategy based on instrumental variables.

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Bibliographic Info

Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 130.

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Length: 29
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:sap:wpaper:wp130

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Keywords: training; knowledge spillovers; local labour markets.;

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References

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  2. 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".
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  13. Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," CESifo Working Paper Series 1665, CESifo Group Munich.
  14. Duranton, Gilles & Puga, Diego, 2003. "Microfoundations of Urban Agglomeration Economies," CEPR Discussion Papers 4062, C.E.P.R. Discussion Papers.
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  17. Alberto Dalmazzo & Guido Blasio, 2007. "Social returns to education in Italian local labor markets," The Annals of Regional Science, Springer, Springer, vol. 41(1), pages 51-69, March.
  18. Brunello, Giorgio & De Paola, Maria, 2008. "Training and economic density: Some evidence form Italian provinces," Labour Economics, Elsevier, vol. 15(1), pages 118-140, February.
  19. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
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Citations

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Cited by:
  1. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers, University of Rome La Sapienza, Department of Public Economics 162, University of Rome La Sapienza, Department of Public Economics.
  2. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers, University of Rome La Sapienza, Department of Public Economics 145, University of Rome La Sapienza, Department of Public Economics.

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