Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58708 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 6197
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
unemployment
sectoral shift
diversification
spatial dependence
nonparametrics
JEL: 
C14
C21
L16
R23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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