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Employment Growth in Italian Local Labour Systems: Issues of Model Specification and Sectoral Aggregation

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  • Francesca Mameli
  • Alessandra Faggian
  • Philip McCann

Abstract

Abstract In this paper we construct a model to estimate local employment growth in Italian local labour markets for the period 1991–2001. The model is constructed in a similar manner to the original models of Glaeser et al. (1992), Henderson et al. (1995) and Combes (2000). Our objective is to identify the extent to which the results estimated by these types of models are themselves sensitive to the model specification. In order to do this we extend the basic models by successively incorporating new explanatory variables into the model framework. In addition, and for the first time, we also estimate these same models at two different levels of sectoral aggregation, for the same spatial structure. Our results indicate that these models are highly sensitive to sectoral aggregation and classification and our results therefore strongly support the use of highly disaggregated data.

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  • Francesca Mameli & Alessandra Faggian & Philip McCann, 2008. "Employment Growth in Italian Local Labour Systems: Issues of Model Specification and Sectoral Aggregation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 343-360.
    • Handle: RePEc:taf:specan:v:3:y:2008:i:3:p:343-360
    DOI: 10.1080/17421770802353030
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    1. Raffaele Paci & Stefano Usai, 2005. "Agglomeration Economies and Growth in Italian Local Labour Systems 1991-2001," ERSA conference papers ersa05p46, European Regional Science Association.
    2. S. Deidda & R. Paci & S. Usai, 2002. "Spatial Externalities and Local Economic Growth," Working Paper CRENoS 200206, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. LAFOURCADE, Miren & MION, Giordano, 2003. "Concentration, spatial clustering and the size of plants : disentangling the sources of co-location externalities," LIDAM Discussion Papers CORE 2003091, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Raffaele Paci & Stefano Usai, 2000. "The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 237-268.
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    Cited by:

    1. Michaela Fuchs, 2011. "How important are agglomeration effects for plant performance? Empirical evidence for Germany," ERSA conference papers ersa11p912, European Regional Science Association.
    2. Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
    3. Roberto BASILE & Cristiana DONATI & Rosanna PITTIGLIO, 2013. "Industry Structure And Employment Growth: Evidence From Semiparametric Geoadditive Models," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 121-160.
    4. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    5. Nadine Levratto & Mounir Amdaoud, 2024. "Sectoral Diversity and Local Employment Growth in France," EconomiX Working Papers 2024-34, University of Paris Nanterre, EconomiX.
    6. Demidova, Olga & Kolyagina, Alena & Pastore, Francesco, 2018. "Marshallian vs Jacobs Effects: Which One Is Stronger? Evidence for Russia Unemployment Dynamics," IZA Discussion Papers 12042, Institute of Labor Economics (IZA).
    7. Rafael González-Val & Miriam Marcén, 2019. "Agglomeration Economies in Small Cities and Business: The Impact of the Great Recession in Aragón (Spain)," Sustainability, MDPI, vol. 11(14), pages 1-17, July.
    8. Alessandra Faggian & Roberta Gemmiti & Timothy Jaquet & Isabella Santini, 2018. "Regional economic resilience: the experience of the Italian local labor systems," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 393-410, March.
    9. Dauth, Wolfgang, 2010. "The mysteries of the trade: employment effects of urban interindustry spillovers," IAB-Discussion Paper 201015, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Sandra Kublina & Muhammad Ali, 2021. "Evolution of industrial diversification and its determinants in West Germany: Evidence from population data of enterprises," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-20, November.
    11. A. Lasagni, 2009. "Agglomeration economies: new evidence on IT employment growth in Italy," Economics Department Working Papers 2009-EP08, Department of Economics, Parma University (Italy).
    12. Elias Giannakis & Adriana Bruggeman, 2017. "Economic crisis and regional resilience: Evidence from Greece," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 451-476, August.
    13. Paolo Di Caro, 2017. "Testing and explaining economic resilience with an application to Italian regions," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 93-113, March.
    14. Maria Dav? & Isidora Barbaccia, 2015. "Measuring agglomeration by spatial effects: a proposal," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(1), pages 44-70.
    15. Wolfgang Dauth & Michaela Fuchs & Anne Otto, 2018. "Long‐run processes of geographical concentration and dispersion: Evidence from Germany," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 569-593, August.
    16. Garcia Alvarez-Coque, Jose-Maria & Lopez-Garcia Usach, T. & Sanchez Garcia, M., 2012. "Territory and innovation behaviour in agri-food firms: does rurality matter?," 126th Seminar, June 27-29, 2012, Capri, Italy 126030, European Association of Agricultural Economists.
    17. Mounir Amdaoud & Nadine Levratto, 2024. "Sectoral Diversity and Local Employment Growth in France," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 544, pages 75-94.
    18. Fabio Mazzola & Iolanda Cascio & Rosalia Epifanio & Giuseppe Giacomo, 2018. "Territorial capital and growth over the Great Recession: a local analysis for Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(2), pages 411-441, March.
    19. Anne Otto & Michaela Fuchs & Wolfgang Dauth, 2011. "Long-term processes of regional concentration and dispersion - fuzzy evidence for Western Germany," ERSA conference papers ersa10p537, European Regional Science Association.
    20. Roberto Basile & Cristiana Donati & Rosanna Pittiglio & Maria Savarese, 2015. "Dinamiche dell?occupazione e struttura produttiva locale in Italia," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(2), pages 33-68.
    21. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Agglomeration Externalities and 1981-2006 Regional Growth in Brazil," Working Papers in Economics 12/07, University of Waikato.
    22. B. Fingleton & P. Cheshire & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & J. McCombie & V. Monastiriotis & B. Moore & M. Roberts, 2008. "Editorial," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 269-273.
    23. Somwrita Sarkar, 2019. "Urban scaling and the geographic concentration of inequalities by city size," Environment and Planning B, , vol. 46(9), pages 1627-1644, November.
    24. Cieślik Andrzej & Misiak Tomasz, 2022. "Related versus unrelated variety and per employee income regional disparities: A case of Polish regions," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 26(4), pages 178-184, October.
    25. Demidova, Olga & Kolyagina, Alena & Pastore, Francesco, 2020. "Marshallian vs Jacobs effects: Which is stronger? Evidence for Russia unemployment dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 244-258.

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