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Local responses to labor demand shocks: A Re-assessment of the case of Italy

Emanuele Ciani, Francesco David and Guido de Blasio ()

Regional Science and Urban Economics, 2019, vol. 75, issue C, 1-21

Abstract: The paper studies how local economies react to labor demand shocks. It focuses on the case of Italy, a country with lasting labor-market disparities in the context of rigid local wages and limited housing supply elasticity. Results document that allowing greater flexibility in local prices is a first-order option to reduce labor-market heterogeneity, while place-based policy seems to be a less viable alternative.

Keywords: Local labor markets; Labor demand; Shocks (search for similar items in EconPapers)
JEL-codes: J23 J61 R23 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.regsciurbeco.2018.12.003

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