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Job Search in Thick Markets: Evidence from Italy

  • Sabrina Di Addario

    ()

    (Bank of Italy)

I analyze empirically the effects of both urban and industrial agglomeration on men�s and women�s search behavior and on the efficiency of matching. The analysis is based on a unique panel data set from the Italian Labor Force Survey micro-data, which covers 520 randomly drawn Local Labor Market Areas (66 percent of the total) over the four quarters of 2002. I compute transition probabilities from non-employment to employment by jointly estimating the probability of searching and the probability of finding a job conditional on having searched, and I test whether these are affected by urbanization and/or industry localization. The main results indicate that both urbanization and industry localization raise job seekers� chances of finding employment (conditional on having searched), but neither of them affects non-employed individuals� search behavior.

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Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 605.

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Date of creation: Dec 2006
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Handle: RePEc:bdi:wptemi:td_605_06
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