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Job Creation in Italy: Geography, Determinants and Perspectives

  • Giovanni Peri

    ()

    (Bocconi University)

  • Alejandro Cunat

    ()

    (London School of Economics)

The extremely large disparities in employment rates across Italian regions, and the bad performance of the Italian economy in terms of job creation in the 80's and early 90's make job creation a top-priority in the economic policy agenda. This paper uses data on employment from 784 Local Labor Systems (LLS's) covering the whole Italian territory to analyze job creation and its covariates for the 1981-1996 period. Local agglomeration economies, in particular input-output linkages, social characteristics, in particular the crime rate, and infrastructure growth are found to be important determinants of employment growth across Italian LLS's. Using these estimates and data relative to 1996, we assess the potential for job creation in the LLS's for the next decade. The Northeast still proves to be the area with strongest potentials, while in the South, Abruzzi and Northern Campania are the areas best equipped for filling their gap with the North.

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File URL: ftp://ftp.gde.unibocconi.it/gde_articles/2001/GDE_V60_N1_P43-74.pdf
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Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 60 (2001)
Issue (Month): 1 (June)
Pages: 43-74

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Handle: RePEc:gde:journl:gde_v60_n1_p43-74
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  1. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
  2. Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
  3. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
  4. Peri, Giovanni & Cuñat, Alejandro, 2001. "Job creation in Italy : geography, determinants and perspectives," HWWA Discussion Papers 133, Hamburg Institute of International Economics (HWWA).
  5. Marimon, Ramon & Zilibotti, Fabrizio, 1996. "'Actual' versus 'Virtual' Employment in Europe: Is Spain Different?," CEPR Discussion Papers 1427, C.E.P.R. Discussion Papers.
  6. Lucio Picci, 1999. "Productivity and Infrastructure in the Italian Regions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 329-353, December.
  7. Jonathan Temple & Paul A. Johnson, 1998. "Social Capability And Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 965-990, August.
  8. Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 297-318, August.
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