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Training and Economic Density: Some Evidence from Italian Provinces

  • Giorgio Brunello

    ()

    (University of Padua)

  • Maria De Paola

    ()

    (University of Calabria)

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.

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Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0030.

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Length: 38 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:pad:wpaper:0030
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