Peer interactions, local markets, and wages: Evidence from Italy

Irene Brunetti, Valerio Intraligi, Andrea Ricci and Claudia Vittori

No 1235, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: This paper investigates the relationship between the spatial distribution of occupations with a high content of peer interactions and wages among Italian provinces. At this aim, we use a unique employer-employee dataset obtained by merging administrative data on wages and labor market histories of individuals, with survey data on job tasks and contents. The spatial distribution of jobs intensive in peer-interactions is further measured according to the occupational structure of Italian provinces. The econometric analysis shows that the concentration of peer interactions leads to higher wages at the province level. These results are robust to firms and workers' heterogeneity and endogeneity issues.

Keywords: Peer interactions; Wages; Agglomeration externalities (search for similar items in EconPapers)
JEL-codes: J31 R12 R23 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-eur, nep-geo, nep-net and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1235

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