Job Search in Thick Markets: Evidence from Italy
Sabrina Lucia Di Addario
Bank of Italy
Bank of Italy Economic Research Paper No. 605
I analyze empirically the effects of both urban and industrial agglomeration on men's and women's search behavior and on the efficiency of matching. The analysis is based on a unique panel data set from the Italian Labor Force Survey micro-data, which covers 520 randomly drawn Local Labor Market Areas (66 percent of the total) over the four quarters of 2002. I compute transition probabilities from non-employment to employment by jointly estimating the probability of searching and the probability of finding a job conditional on having searched, and I test whether these are affected by urbanization and/or industry localization. The main results indicate that both urbanization and industry localization raise job seekers' chances of finding employment (conditional on having searched), but neither of them affects non-employed individuals' search behavior.
Number of Pages in PDF File: 59
Keywords: Labor market transitions, search intensity, urbanization, industry localization
JEL Classification: J64, R00, J60working papers series
Date posted: January 4, 2007
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