Labor market spillovers of a large plan opening. Evidence from the oil industry
Matteo Alpino (),
Irene Di Marzio (),
Maurizio Lozzi () and
Vincenzo Mariani ()
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Matteo Alpino: Bank of Italy
Irene Di Marzio: Bank of Italy
Maurizio Lozzi: Bank of Italy
Vincenzo Mariani: Bank of Italy
No 1386, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area
We study the labor market spillovers of the opening of a large oil extracting facility in a peripheral area of the South of Italy, focusing on the time when the physical investment was made, before production took off and royalties started flowing in. Using firm-level administrative data covering the universe of non-farm businesses in a difference-in-differences design, we find large positive effects on firm-level employment and positive, albeit smaller, effects on wages per employee. Within-firm employment gains are geographically localized and are concentrated in the upstream sector (not only in manufacturing) and among the largest firms; however the number of firms declines. Aggregate results obtained using census data show that the overall employment effect in the area is slightly positive.
Keywords: oil; local labor markets; plant opening; natural resource (search for similar items in EconPapers)
JEL-codes: J21 L71 O13 R11 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1386_22
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