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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

Abstract: 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)
Date: 2022-10
New Economics Papers: this item is included in nep-lma
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