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Italian cities: definitions, characteristics and growth

Author

Listed:
  • Andrea Lamorgese

    (Banca d'Italia)

  • Andrea Petrella

    (Banca d'Italia)

Abstract

One of the salient features of economic development is its pronounced urban dimension. As in other advanced economies, most economic activity in Italy is concentrated in urban areas: in 2001, the 73 urban Local Labor Markets (LLM) produced 62 percent of Italian value added. Since the 1980s, Italian urban agglomerations have increased in size, both in economic terms and in terms of occupied area, absorbing a growing number of municipalities. This process is reflected in the rising contribution of urban LLMs to the aggregate dynamics of population, employees, plants and income. Urban areas stand out for being better able to attract high-skilled workers, for having a higher concentration of innovative activity and for being more specialized in knowledge-intensive services (KIS). Even net of observable characteristics, cities maintain a performance advantage with respect to non-urban areas: in terms of labor productivity, the urban premium is nil for industry and it amounts to 3 percent for services.

Suggested Citation

  • Andrea Lamorgese & Andrea Petrella, 2018. "Italian cities: definitions, characteristics and growth," Questioni di Economia e Finanza (Occasional Papers) 454, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_454_18
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2018-0454/QEF_454_18.pdf
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    Cited by:

    1. Loschiavo, David, 2021. "Big-city life (dis)satisfaction? The effect of urban living on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 740-764.
    2. Antonio Accetturo & Sauro Mocetti, 2019. "Historical Origins and Developments of Italian Cities," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(2), pages 205-222, July.

    More about this item

    Keywords

    agglomeration economies; urban growth; urban productivity premium;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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