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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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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. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
  2. Krugman, Paul R & Venables, Anthony J, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 857-80, November.
  3. 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.
  4. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
  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, 1995. "Productivity and Infrastructure in the Italian Regions," Working Papers 230, Dipartimento Scienze Economiche, Universita' di Bologna.
  7. Giovanni Peri & Alejandro Cunat, 2001. "Job Creation in Italy: Geography, Determinants and Perspectives," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 60(1), pages 43-74, June.
  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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