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Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces

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  • Basile, Roberto
  • Girardi, Alessandro
  • Mantuano, Marianna
  • Russo, Giuseppe

Abstract

We analyze the effect of interregional migration on regional unemployment in Italy. With the help of a simple two-region model adapted to the main features of the Italian NorthSouth dualism, we illustrate the effects of labor mobility with and without human capital externalities. Using longitudinal data over the years 2002-2011 for 103 NUTS-3 Italian regions, we document that net outflows of human capital from the South to the North have increased the unemployment rate in the South, while it did not affect the unemployment rate in the North. Our analysis contributes to the literature on interregional human capital mobility suggesting that reducing human capital flight from Southern regions should be a priority.

Suggested Citation

  • Basile, Roberto & Girardi, Alessandro & Mantuano, Marianna & Russo, Giuseppe, 2017. "Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces," EconStor Preprints 168560, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:168560
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    Cited by:

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    2. Annamaria Nifo & Domenico Scalera & Gaetano Vecchione, 2020. "Does skilled migration reduce investment in human capital? An investigation on educational choices in Italian regions (2001–2016)," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 781-802, November.
    3. Iacopo Odoardi & Donatella Furia & Piera Cascioli, 2021. "Can social support compensate for missing family support? An examination of dropout rates in Italy," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 121-139, February.

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    More about this item

    Keywords

    Unemployment; Migration; Human Capital; Exernalities; Italian Regions;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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