Structural Change and Human Capital in Italy’s Productive Economy

45 Pages Posted: 16 Mar 2012

See all articles by Roberto Torrini

Roberto Torrini

Bank of Italy

Fabiano Schivardi

Luiss Guido Carli - Department of Economics and Finance; Einaudi Institute for Economics and Finance (EIEF); Centre for Economic Policy Research (CEPR)

Date Written: November 16, 2011

Abstract

We study the role of human capital in the restructuring of the Italian economy. The share of university graduates in the population has long been far lower in Italy (12 percent in 2007) that in the rest of Europe (24 percent). The 32 reform of Italian degree programmes has significantly increased the supply of graduates, mostly absorbed by the private sector. Firm-level evidence shows that the growth in graduate employment is due almost entirely to a “within” firm component rather than to a shift of the productive structure from low to high human capital activities. We also find that a higher share of university graduates at local level is positively associated with restructuring activities and with productivity growth. This suggests that increasing the workforce’s level of educational attainment is crucial to overcome the stagnation in productivity that has characterized the Italian economy since the mid-nineties.

Note: PDF in Italian

Keywords: human capital, tertiary education, firm restructuring, growth

JEL Classification: J24

Suggested Citation

Torrini, Roberto and Schivardi, Fabiano, Structural Change and Human Capital in Italy’s Productive Economy (November 16, 2011). Bank of Italy Occasional Paper No. 108, Available at SSRN: https://ssrn.com/abstract=2023072 or http://dx.doi.org/10.2139/ssrn.2023072

Roberto Torrini (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Fabiano Schivardi

Luiss Guido Carli - Department of Economics and Finance ( email )

Viale Romania 32
Rome, Rome 00187
Italy

Einaudi Institute for Economics and Finance (EIEF) ( email )

Via Due Macelli, 73
Rome, 00187
Italy

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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