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Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces

Roberto Basile (), Alessandro Girardi (), Marianna Mantuano and Giuseppe Russo

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: We analyze the effect of interregional migration on regional unemployment in Italy. With the help of a simple two-region model adapted to the main features of the Italian NorthSouth dualism, we illustrate the effects of labor mobility with and without human capital externalities. Using longitudinal data over the years 2002-2011 for 103 NUTS-3 Italian regions, we document that net outflows of human capital from the South to the North have increased the unemployment rate in the South, while it did not affect the unemployment rate in the North. Our analysis contributes to the literature on interregional human capital mobility suggesting that reducing human capital flight from Southern regions should be a priority.

Keywords: Unemployment; Migration; Human Capital; Exernalities; Italian Regions (search for similar items in EconPapers)
JEL-codes: C23 R23 J61 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-dem, nep-eur, nep-geo, nep-hrm, nep-lab, nep-mig and nep-ure
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Working Paper: Interregional Migration, Human Capital Externalities and Unemployment Dynamics: Evidence from Italian Provinces (2016) Downloads
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