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

Michele Limosani
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Michele Limosani: Università di Messina

Chapter 8 in The European Labour Market. Regional Dimensions, 2006, pp 179-185 from AIEL - Associazione Italiana Economisti del Lavoro

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

Keywords: labour productivity; unemployment differentials; panel data. (search for similar items in EconPapers)
JEL-codes: C33 J24 J30 (search for similar items in EconPapers)
Date: 2006
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