TY - JOUR

T1 - Training and economic density

T2 - some evidence from Italian provinces

AU - Brunello, Giorgio

AU - De Paola, Maria

PY - 2008/2

Y1 - 2008/2

N2 - 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.

AB - 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.

KW - Training

KW - Local labor markets

KW - Italy

U2 - 10.1016/j.labeco.2006.10.001

DO - 10.1016/j.labeco.2006.10.001

M3 - Journal article

VL - 15

SP - 118

EP - 140

JO - Labour Economics

JF - Labour Economics

SN - 0927-5371

IS - 1

ER -