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


  • Agovino, Massimiliano


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

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  • Agovino, Massimiliano, 2013. "Do “good neighbors” enhance regional performances in including disabled people in the labour market? A spatial Markov chain approach," MPRA Paper 47038, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:47038

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    1. Daniela Schettini & Carlos R. Azzoni & Antonio Paez, 2011. "Neighborhood and Efficiency in Manufacturing in Brazilian Regions," International Regional Science Review, , vol. 34(4), pages 397-418, October.
    2. 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.
    3. Mark Partridge & Dan Rickman, 1997. "The Dispersion of US State Unemployment Rates: The Role of Market and Non-market Equilibrium Factors," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 593-606.
    4. 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.
    5. Maria Francesca Cracolici & Miranda Cuffaro & Peter Nijkamp, 2007. "Geographical Distribution of Unemployment: An Analysis of Provincial Differences in Italy," Growth and Change, Wiley Blackwell, vol. 38(4), pages 649-670.
    6. 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.
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    8. 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.
    9. 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.
    10. Latreille, Paul L. & Sloane, Peter J., 2003. "Disability, Gender and the Labour Market," IZA Discussion Papers 936, Institute for the Study of Labor (IZA).
    11. 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.
    12. 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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    1. repec:spr:qualqt:v:52:y:2018:i:1:d:10.1007_s11135-016-0455-6 is not listed on IDEAS
    2. Massimiliano Agovino & Agnese Rapposelli, 2017. "Macroeconomic impact of flexicurity on the integration of people with disabilities into the labour market. A two-regime spatial autoregressive analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 307-334, January.

    More about this item


    Disabled People; Public Policy; Non-Labour Market Discrimination; Stochastic Frontier Approach; Spatial Markov Chain.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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