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Geographical distribution of unemployment: an analysis of provincial differences in Italy

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  • Cracolici, M. Francesca

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Cuffaro, Miranda
  • Nijkamp, Peter

Abstract

Unemployment rates appear to vary widely at the subregional (e.g. local or provincial) level. Using spatial econometric models for spatial autocorrelation, this paper focuses attention on the spatial structure of regional unemployment disparities of Italian provinces. On the basis of findings from the economic literature and of the available socio-economic data, various model specifications including different explanatory variables are tested to investigate the geographical distribution of unemployment in the 103 provinces of Italy for the year 2003. The results suggest that there is a significant degree of spatial dependence among labour markets at the provincial level in Italy. Provinces marked by high unemployment, as well as those characterized by low unemployment, tend to be spatially clustered, demonstrating the presence of spatial persistency.

Suggested Citation

  • Cracolici, M. Francesca & Cuffaro, Miranda & Nijkamp, Peter, 2007. "Geographical distribution of unemployment: an analysis of provincial differences in Italy," Serie Research Memoranda 0001, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:2007-1
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    More about this item

    Keywords

    Regional unemployment; ESDA; Spatial lag model; Italian provinces;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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