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Job Creation in Italy: Geography, Determinants and Perspectives

Author

Listed:
  • Giovanni Peri

    (Bocconi University)

  • Alejandro Cunat

    (London School of Economics)

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:gde:journl:gde_v60_n1_p43-74
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    References listed on IDEAS

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    Cited by:

    1. Ehrl, Philipp, 2013. "Agglomeration economies with consistent productivity estimates," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 751-763.
    2. Kowalewski, Julia, 2012. "Inter-industrial relations and sectoral employment development in German regions," HWWI Research Papers 127, Hamburg Institute of International Economics (HWWI).
    3. 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.
    4. Karoly Fazekas & Jeno Koltay (ed.), 2004. "The Hungarian Labour Market 2004," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2004, December.
    5. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.
    6. Karoly Fazekas, 2003. "Effects of foreign direct investment on the performance of local labour markets - The case of Hungary," Budapest Working Papers on the Labour Market 0303, Institute of Economics, Centre for Economic and Regional Studies.

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    More about this item

    Keywords

    local agglomeration economies; employment growth; Italian regions;
    All these keywords.

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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