Beyond Regional Institutions: Widening Unemployment Differentials in Italy

Michele Limosani

LABOUR, 2004, vol. 18, issue 3, 503-514

Abstract: Abstract. Building on Layard and Jackman's framework, we propose a simple model to analyse the relation between labour productivity and unemployment differentials in Italy and present some panel data evidence to support the theoretical predictions of the model. The empirical analysis strongly suggests that the productivity differential is one of the main factors driving the dynamics of the unemployment differential in Italy.

Date: 2004
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