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Local responses to labor demand shocks: A Re-assessment of the case of Italy

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  • Ciani, Emanuele
  • David, Francesco
  • de Blasio, Guido

Abstract

The paper studies how local economies react to labor demand shocks. It focuses on the case of Italy, a country with lasting labor-market disparities in the context of rigid local wages and limited housing supply elasticity. Results document that allowing greater flexibility in local prices is a first-order option to reduce labor-market heterogeneity, while place-based policy seems to be a less viable alternative.

Suggested Citation

  • Ciani, Emanuele & David, Francesco & de Blasio, Guido, 2019. "Local responses to labor demand shocks: A Re-assessment of the case of Italy," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 1-21.
    • Handle: RePEc:eee:regeco:v:75:y:2019:i:c:p:1-21
    DOI: 10.1016/j.regsciurbeco.2018.12.003
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    3. Giuseppe Albanese & Guglielmo Barone & Guido de Blasio, 2023. "The impact of place‐based policies on interpersonal income inequality," Economica, London School of Economics and Political Science, vol. 90(358), pages 508-530, April.
    4. d'Agostino, Giorgio & Patriarca, Fabrizio & Pieroni, Luca & Scarlato, Margherita, 2020. "The perverse effects of hiring credits as a place-based policy: Evidence from Southern Italy," MPRA Paper 102240, University Library of Munich, Germany.
    5. Emanuele Ciani & Roberto Torrini, 2019. "The Geography of Italian Income Inequality: Recent Trends and the Role of Employment," Politica economica, Società editrice il Mulino, issue 2, pages 173-208.
    6. Matteo Alpino & Irene Di Marzio & Maurizio Lozzi & Vincenzo Mariani, 2022. "Labor market spillovers of a large plan opening. Evidence from the oil industry," Temi di discussione (Economic working papers) 1386, Bank of Italy, Economic Research and International Relations Area.
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    More about this item

    Keywords

    Local labor markets; Labor demand; Shocks;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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