Job Search in Thick Markets: Evidence from Italy

59 Pages Posted: 4 Jan 2007

Multiple version iconThere are 3 versions of this paper

Date Written: December 2006

Abstract

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.

Keywords: Labor market transitions, search intensity, urbanization, industry localization

JEL Classification: J64, R00, J60

Suggested Citation

Di Addario, Sabrina Lucia, Job Search in Thick Markets: Evidence from Italy (December 2006). Bank of Italy Economic Research Paper No. 605. Available at SSRN: https://ssrn.com/abstract=954909 or http://dx.doi.org/10.2139/ssrn.954909

Sabrina Lucia Di Addario (Contact Author)

Bank of Italy ( email )

Via 20 settembre, 97/e
00187 Rome, I - 00184
Italy
+39 06 4792 3458 (Phone)
+39 06 4792 5626 (Fax)

HOME PAGE: http://sites.google.com/site/sabrinadiaddario/

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