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Quality of institutions and employment dynamics of social enterprises: Evidence from Italian regions

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  • Savoia, Francesco
  • Bandini, Federica
  • Bolzani, Daniela
  • Grassi, Eleonora

Abstract

This paper empirically investigates the effect of the quality of regional institutions on social enterprises’ employment growth. Using an original panel dataset of social enterprises during 2011–2020, FE and GMM estimates provide three findings. First, higher institutional quality at the regional level positively affects firms’ employment. Second, the effect is heterogenous and varies across firms’ size. Third, corruption in the provision of public services significantly inhibits the “speed” of employment growth for Micro and SMEs.

Suggested Citation

  • Savoia, Francesco & Bandini, Federica & Bolzani, Daniela & Grassi, Eleonora, 2023. "Quality of institutions and employment dynamics of social enterprises: Evidence from Italian regions," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s154461232300452x
    DOI: 10.1016/j.frl.2023.104080
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    1. Sun, Zhaoyang & Liu, Ling & Pan, Runquan & Wang, Yiwei & Zhang, Bingbing, 2025. "Tourism and economic growth: The role of institutional quality," International Review of Economics & Finance, Elsevier, vol. 98(C).

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    Keywords

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    JEL classification:

    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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