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How Amazon shapes local labour markets: Impacts on income and employment across Italian municipalities

Author

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  • Tramontano, Jacopo
  • Cirillo, Valeria
  • Guarascio, Dario

Abstract

Over the past decade, e-commerce platforms have emerged as key drivers of economic transformation, reshaping local labour markets. This study examines the impact of Amazon's expansion in Italy through the establishment of Fulfillment Centers (FCs) and Delivery Stations (DSs) on municipal-level wages, employment and income distribution. Using administrative tax data for 2013-2023 and a staggered difference-in-differences design, we find that Amazon's entry reduces per capita wages, particularly following the opening of DSs in urban municipalities. FCs also increase the number of low-income earners while reducing high-income earners, contributing to income polarisation.

Suggested Citation

  • Tramontano, Jacopo & Cirillo, Valeria & Guarascio, Dario, 2026. "How Amazon shapes local labour markets: Impacts on income and employment across Italian municipalities," GLO Discussion Paper Series 1798, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1798
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    References listed on IDEAS

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    1. Valeria Cirillo & Donato Cutolo & Dario Guarascio & Martin Kenney & Jacopo Tramontano, 2025. "Leveraging Workforce Flexibility to Navigate Platform-Induced Uncertainty: A study of the Italian Restaurant and Hospitality Sectors," LEM Papers Series 2025/07, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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    Keywords

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    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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