Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67232
Authors: 
Mussida, Chiara
Pastore, Francesco
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6954
Abstract: 
Theoretical reasoning justifies different signs of the relationship between the local variation in unemployment rates and the extent of workers reallocation. This paper aims to test different theoretical hypotheses in the case of Italy by using the longitudinal files of the Italian labour force survey over the years from 2004 to 2010. We find that labour turnover, as well as inflows and outflows separately, differ significantly at the regional level and are ceteris paribus positively related to the unemployment rate. In addition, we study the determinants of labour turnover across NUTS1 and NUTS2 geographical units and find that it correlates positively with structural change, as measured by the Lilien index, and negatively with the degree of industrial concentration, as measured by the Herfindahl index. Once we control for sectoral shifts and industrial concentration, we note a reduction of between 25 and 40% of the regional gap in labour turnover rates. This general conclusion is robust to the use of different control variables.
Subjects: 
regional unemployment
labour turnover
labour reallocation
structural change
JEL: 
C33
J63
P25
P52
R23
Document Type: 
Working Paper

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