Spatial disaggregation patterns and structural determinants of job flows: an empirical analysis

Authors: Cefis, Elena¹; Gabriele, Roberto²

Source: International Review of Applied Economics, Volume 23, Number 1, January 2009 , pp. 89-111(23)

Publisher: Routledge, part of the Taylor & Francis Group

Buy & download fulltext article:

Price: $50.43 plus tax (Refund Policy)

Abstract:

The paper investigates the changes in job creation and destruction flows at a very disaggregated level of analysis. We analyse whether job flows at lower levels of spatial aggregation display regularities that are in line with national ones in a bid to disentangle the role of labour market institutions. Using a unique database of the population of firms in Trentino (a north-eastern province of Italy) from 1991 to 2001, we find that: (1) job flows show a 'fractal' tendency, i.e. many regularities appear to be scale invariant (magnitude of flow and persistence) and that job flow magnitude is in line with the average values for Italy; (2) there are some qualifications to their 'fractality': the contribution of entrant firms to the job creation process is lower than the corresponding contribution at national level, as is the share of job destruction accounted for by exiting firms; and (3) firm size and age influence job flows.

Keywords: labour reallocation; job creation; job destruction; spatial disaggregation two-stage Heckman estimator

Document Type: Research article

DOI: http://dx.doi.org/10.1080/02692170802496778

Affiliations: 1: Department of Economics, University of Bergamo, Bergamo, Italy,T.C. Koopmans Research Institute, Utrecht University, Utrecht, The Netherlands 2: Department of Management and Computer Science, University of Trento, Trento, Italy

Publication date: 2009-01-01

More about this publication?