Reassessing Cross-Regional Convergence in Italy Through Distribution Dynamics

Abstract:     
I employ distribution dynamics techniques to assess labor productivity convergence across Italian regions in the period 1980-2003. In particular, I investigate four different convergence hypotheses, namely: absolute, conditional, neoclassical and technological. Consistently with the majority of the literature, I find supportive evidence of only technological conditional convergence. Thus, I conclude that the North-South labor productivity gap may be closed in the long run if structural differences are evened out and if technological diffusion towards laggard regions actually takes place.

Keywords: distribution dynamics, Italian regions, neoclassical and technological convergee

JEL Classification: C14, O33, O47

Accepted Paper Series