Agglomeration effects in the labour market: an empirical analysis for Italy

DE CASTRIS, MARUSCA; Department Of Public Institutions, Economy And Society - University Of Rome “Roma Tre” & PELLEGRINI, GUIDO; Department Of Economic Theory And Quantitative Methods For Political Choice - Sapienza, University Of Rome
Extensive and persistent geographic variability of the unemployment rate within the same region has been attributed to various causes. Some theories identify the “thickness” of markets as the source of positive externalities affecting labour market by improving the ability to match the skills requested by firms with those offered by workers. A recent paper by Gan and Zhang (2006) empirically confirms this hypothesis for the US labour markets. Agglomeration can be defined as aggregation of...