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Do “good neighbors” enhance regional performances in including disabled people in the labor market? A spatial Markov chain approach

Listed author(s):
  • M. Agovino

    ()

The purpose of this study was to examine whether the performance of Italian regions in providing employment of disabled people according to Law 68/99 can be affected by the performance of neighboring regions. Hence, we propose a two-step analysis focusing on Italian regions for the period 2000–2009. In the first step, we verify by means of Stochastic Frontier Approach that Central and Northern Italy regions are more efficient than Southern Italy ones in the matching process between demand and supply of jobs for disabled people. Then, the efficiency results are analyzed using a Markov Spatial Transition Matrix in order to provide insights into the transitions of regions between different efficiency levels, taking their local context into account. The results of this analysis show that good neighbors are important in promoting the improvement of regions’ performance. However, the effects produced by bad neighbors should not be underestimated, especially when they are concentrated in an area of the country and show a time-space persistence. The effect of a persistent dualism on the performance of Italian regions with respect to the application of Law 68/99 represents a problem for policy-makers. Hence, they must seriously consider it, especially when regions with low efficiency scores are surrounded by neighbors with poor efficiency score and show an unhealthy poorly performing labor market. Copyright Springer-Verlag Berlin Heidelberg 2014

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File URL: http://hdl.handle.net/10.1007/s00168-014-0619-z
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Article provided by Springer & Western Regional Science Association in its journal The Annals of Regional Science.

Volume (Year): 53 (2014)
Issue (Month): 1 (August)
Pages: 93-121

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Handle: RePEc:spr:anresc:v:53:y:2014:i:1:p:93-121
DOI: 10.1007/s00168-014-0619-z
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  1. Daniela Schettini & Carlos Roberto Azzoni & Antonio Páez, 2011. "Neighborhood and Efficiency in Manufacturing in Brazilian Regions: a Spatial Markov Chain Analysis," ERSA conference papers ersa10p1052, European Regional Science Association.
  2. Jones, Melanie K. & Latreille, Paul L. & Sloane, Peter J., 2007. "Disability and Work: A Review of the British Evidence," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 25, pages 473-498, Abril.
  3. Daron Acemoglu & Joshua D. Angrist, 2001. "Consequences of Employment Protection? The Case of the Americans with Disabilities Act," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 915-957, October.
  4. M. Agovino & A. Rapposelli, 2013. "Inclusion of disabled people in the Italian labour market: an efficiency analysis of law 68/1999 at regional level," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(3), pages 1577-1588, April.
  5. Melanie K. Jones & Peter J. Sloane, 2010. "Disability and Skill Mismatch," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 101-114, September.
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  7. Massimiliano Agovino & Agnese Rapposelli, 2014. "Employment of disabled people in the private sector. An analysis at the level of Italian Provinces according to article 13 of law 68/1999," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1537-1552, May.
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  13. Wendy A. Stock & Kathleen Beegle, 2004. "Employment Protections for Older Workers: Do Disability Discrimination Laws Matter?," Contemporary Economic Policy, Western Economic Association International, vol. 22(1), pages 111-126, January.
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  15. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
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