Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20413
Authors: 
de Paola, Maria
Brunello, Giorgio
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1173
Abstract: 
We use a search and matching model to investigate the economic relationship between training and local economic conditions. We identify two aspects of this relationship going in opposite directions: on the one hand, the complementarity between local knowledge spillovers and training generates a positive correlation with local density; on the other hand, the negative influence of higher wages in denser areas reduces training. Overall the relationship can be either positive or negative, depending on the relative strength of the two effects. Our empirical analysis, based on a sample of Italian firms, shows that training is lower in provinces with higher labor market density, measured as the number of employees per squared kilometer. This empirical result confirms previous evidence by Brunello and Gambarotto (2004) based on UK data.
Subjects: 
training
local labor markets
Italy
JEL: 
J24
R12
Document Type: 
Working Paper

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