Sectoral Shifts, Diversification and Regional Unemployment: Evidence from Local Labour Systems in Italy

42 Pages Posted: 24 Dec 2011

See all articles by Roberto Basile

Roberto Basile

University of L'Aquila - Faculty of Economics

Alessandro Girardi

National Institute of Statistics (ISTAT)

Marianna Mantuano

affiliation not provided to SSRN

Francesco Pastore

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate; IZA Institute of Labor Economics

Abstract

Using Local Labour Systems (LLSs) data, this work aims at assessing the effects of sectoral shifts and industry specialization patterns on regional unemployment in Italy over the years 2004-2008, when huge worker reallocation caused by changes in the international division of labour occurred. Italy represents an interesting case study because of the high degree of spatial heterogeneity in local labour market performance and the well-known North-South divide. Furthermore, the presence of strongly specialized LLSs (Industrial Districts, IDs) allows us to test whether IDs perform better than highly diversified urban areas thanks to the effect of agglomeration economies, or vice versa. Building on a semiparametric spatial auto-regressive framework, our empirical investigation documents that sectoral shifts and the degree of specialization exert a negative role on unemployment dynamics. By contrast, highly diversified areas turn out to be characterized by better labour market performances.

Keywords: unemployment, sectoral shift, diversification, spatial dependence, nonparametrics

JEL Classification: C14, C21, L16, R23

Suggested Citation

Basile, Roberto and Girardi, Alessandro and Mantuano, Marianna and Pastore, Francesco, Sectoral Shifts, Diversification and Regional Unemployment: Evidence from Local Labour Systems in Italy. IZA Discussion Paper No. 6197, Available at SSRN: https://ssrn.com/abstract=1976528

Roberto Basile (Contact Author)

University of L'Aquila - Faculty of Economics ( email )

Roio Poggio, 67040
Italy

Alessandro Girardi

National Institute of Statistics (ISTAT) ( email )

Via Cesare Balbo 16
00184 Rome, 0185
Italy

Marianna Mantuano

affiliation not provided to SSRN

Francesco Pastore

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate ( email )

Via Antonio Vivaldi, 43
Caserta CE, Caserta 81100
Italy

HOME PAGE: http://www.giurisprudenza.unina2.it/news.php?nid=185

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
25
Abstract Views
602
PlumX Metrics