Widening Unemployment Differentials in Italy: the Role of Wage and Labour Productivity

Michele Limosani
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Michele Limosani: University of Messina

Chapter 7 in The European Labour Market, 2006, pp 179-185 from Springer

Abstract: 7.4 Concluding remarks Unemployment differentials in Italy have widened steadily since 1960. Although previous research into the causes of these spatial differences has improved our understanding of why they may occur, there is still much work to be done. This chapter has focused on labour productivity and wage differentials as two of the main driving forces of unemployment differentials over time. To this end, it has proposed a simple model in order to highlight the potential channels through which these variables may influence unemployment, and it has provided empirical evidence in support of this relation. The results of the empirical investigation strongly suggest that both wage and productivity differentials are important factors in explaining the dynamics of unemployment disparities in Italy over the past forty years.

Keywords: Labour Productivity; Wage Differential; Nominal Wage; Productivity Differential; Regional Unemployment (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:spr:aiechp:978-3-7908-1680-8_8

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DOI: 10.1007/3-7908-1680-9_8

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