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Training and economic density: some evidence from Italian provinces

Research output: Contribution to journalJournal articlepeer-review

Published
<mark>Journal publication date</mark>02/2008
<mark>Journal</mark>Labour Economics
Issue number1
Volume15
Number of pages23
Pages (from-to)118-140
Publication StatusPublished
<mark>Original language</mark>English

Abstract

In this paper we use a search and matching model to investigate the economic relationship between training and local economic conditions. We identify two aspects of this relationship going in opposite directions: on the one hand, the complementarity between local knowledge spillovers and training generates a positive correlation with local density; on the other hand, the negative influence of higher wages in denser areas reduces training. Overall the relationship can be either positive or negative, depending on the relative strength of the two effects. Our empirical analysis, based on a sample of Italian firms, shows that training is lower in provinces with higher labor market density, measured as the number of employees per squared kilometer.