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Training and economic density: Some evidence form Italian provinces

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  • Brunello, Giorgio
  • De Paola, Maria

Abstract

In this paper we use a search and matching model to investigate the economic relationship between training and local economic conditions. We identify two aspects of this relationship going in opposite directions: on the one hand, the complementarity between local knowledge spillovers and training generates a positive correlation between training and local density; on the other hand, higher wages and labor turnover in denser areas reduce training. Overall the relationship can be either positive or negative, depending on the relative strength of these two effects. Our empirical analysis, based on a sample of Italian firms, shows that training is lower in provinces with higher labor market density, measured as the number of employees per squared kilometer.
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Suggested Citation

  • 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.
    • Handle: RePEc:eee:labeco:v:15:y:2008:i:1:p:118-140
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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