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Training and Economic Density: Some Evidence from Italian Provinces

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  • Giorgio Brunello

    () (University of Padua)

  • Maria De Paola

    () (University of Calabria)

Abstract

In this paper we use a search and matching model to investigate the economic relationship between training and local economic conditions. We identify two aspects of this relationship going in opposite directions: on the one hand, the complementarity between local knowledge spillovers and training generates a positive correlation between training and local density; on the other hand, higher wages and labor turnover in denser areas reduce training. Overall the relationship can be either positive or negative, depending on the relative strength of these two effects. Our empirical analysis, based on a sample of Italian firms, shows that training is lower in provinces with higher labor market density, measured as the number of employees per squared kilometer.

Suggested Citation

  • Giorgio Brunello & Maria De Paola, 2006. "Training and Economic Density: Some Evidence from Italian Provinces," "Marco Fanno" Working Papers 0030, Dipartimento di Scienze Economiche "Marco Fanno".
  • Handle: RePEc:pad:wpaper:0030
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    Cited by:

    1. Giuseppe Croce & Emanuela Ghignoni, 2012. "Employer-provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 339-353, May.
    2. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    3. Francisca Bremberger & Rudolf Hochholzer & Peter Huber, 2016. "Labour Turnover, Employment Density and Employer Provided Training: Evidence from Vienna," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 2(1), pages 5-22, November.
    4. Stockinger, Bastian & Zwick, Thomas, 2016. "Apprentice Poaching in Regional Labor Markets," Annual Conference 2016 (Augsburg): Demographic Change 145565, Verein für Socialpolitik / German Economic Association.
    5. Pierre-Philippe Combes & Laurent Gobillon, 2014. "The Empirics of Agglomeration Economies," Working Papers halshs-01071761, HAL.
    6. Silva, Carlos Eduardo Lobo e & Hewings, Geoffrey J.D., 2010. "A Decisão sobre Investimento em Capital Humano em um Arranjo Produtivo Local (APL): Uma Abordagem Teórica," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 64(1), March.
    7. Giulio Cainelli & Roberto Ganau & Donato Iacobucci, 2016. "Do Geographic Concentration and Vertically Related Variety Foster Firm Productivity? Micro-Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 47(2), pages 197-217, June.
    8. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does Regional Training Supply Determine Employees' Training Participation?," IZA Discussion Papers 8101, Institute for the Study of Labor (IZA).
    9. Hinz, Tina & Mohrenweiser, Jens, 2017. "The Effect of Regional Competition and Company-sponsored Training on the Productivity-Wage Wedge," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168292, Verein für Socialpolitik / German Economic Association.
    10. Sylvi Rzepka & Marcus Tamm, 2016. "Local employer competition and training of workers," Applied Economics, Taylor & Francis Journals, vol. 48(35), pages 3307-3321, July.
    11. Picchio, Matteo & van Ours, Jan C., 2011. "Market imperfections and firm-sponsored training," Labour Economics, Elsevier, vol. 18(5), pages 712-722, October.
    12. Muehlemann, Samuel & Wolter, Stefan C., 2011. "Firm-sponsored training and poaching externalities in regional labor markets," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 560-570.
    13. Cécile Détang-Dessendre, 2010. "Accès à la formation continue en entreprise et caractéristiques des marchés locaux du travail," Économie et Statistique, Programme National Persée, vol. 431(1), pages 115-128.
    14. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
    15. Andrea Filippetti & Frederick Guy & Simona Iammarino, 2015. "Does training help in times of crisis? Training in employment in Northern and Southern Italy," Working Papers 28, Birkbeck Centre for Innovation Management Research, revised Dec 2015.
    16. Dostie, Benoit, 2014. "Innovation, Productivity, and Training," IZA Discussion Papers 8506, Institute for the Study of Labor (IZA).
    17. Giulio Cainelli & Andrea Fracasso & Giuseppe Vittucci Marzetti, 2015. "Spatial agglomeration and productivity in Italy: A panel smooth transition regression approach," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 39-67, November.
    18. Heywood, John S. & Jirjahn, Uwe & Pfister, Annika, 2017. "Product Market Competition and Employer Provided Training in Germany," IZA Discussion Papers 11054, Institute for the Study of Labor (IZA).
    19. Bilanakosa, Christos & Heywood, John S. & Sessions, John & Theodoropoulos, Nikolaos, 2017. "Worker Training and Quality Competition," GLO Discussion Paper Series 137, Global Labor Organization (GLO).
    20. Dominique Goux, 2010. "L’enquête Formation et Qualification Professionnelle : une source inépuisable pour la recherche en sciences sociales," Économie et Statistique, Programme National Persée, vol. 431(1), pages 3-11.
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    22. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers 162, University of Rome La Sapienza, Department of Public Economics.
    23. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0831-8 is not listed on IDEAS

    More about this item

    Keywords

    training; local labor markets; Italy;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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