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Sectoral Shifts, Diversification and Regional Unemployment. Evidence From Local Labour Systems in Italy

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Author Info

  • Roberto Basile
  • Alessandro Girardi
  • Marianna Mantuano
  • Francesco Pastore

Abstract

Using local labour systems data, this work aims at assessing the effects of sectoral shifts and industry specialisation 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 specialised local labour systems (industrial districts) allows us to test whether industrial districts perform better than highly diversified urban areas thanks to the effect of agglomeration economies, or vice versa. Building on a semiparametric spatial autoregressive framework, our empirical investigation documents that sectoral shifts and the degree of specialisation exert a negative effect on unemployment dynamics. By contrast, highly diversified areas turn out to be characterised by better labour market performances.

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Bibliographic Info

Paper provided by WIFO in its series WIFO Working Papers with number 411.

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Length: 42 pages
Date of creation: 01 Dec 2011
Date of revision:
Handle: RePEc:wfo:wpaper:y:2011:i:411

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  1. Abraham, Katharine G. & Katz, Lawrence F., 1986. "Cyclical Unemployment: Sectoral Shifts or Aggregate Disturbances?," Scholarly Articles 3442781, Harvard University Department of Economics.
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Cited by:
  1. 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).
  2. Ansari, Muhammad Rashid & Mussida, Chiara & Pastore, Francesco, 2013. "Note on Lilien and Modified Lilien Index," IZA Discussion Papers 7198, Institute for the Study of Labor (IZA).
  3. 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).
  4. 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.

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