Training and economic density: Some evidence form Italian provinces |
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| Authors: | Giorgio Brunello Maria De Paola |
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| Institution: | 1. University of Padua, Italy;2. CESifo, Munich, Germany;3. IZA, Bonn, Germany;4. University of Calabria, Italy;1. Stanley Division of Developmental Neurovirology, Department of Pediatrics, Johns Hopkins University School of Medicine, 600 N. Wolfe Street, Blalock 1105, Baltimore, MD 21287-4933, USA;2. Department of Psychiatry, Johns Hopkins University School of Medicine, Baltimore, MD, USA;3. Department of Microbiology and Immunology, University of Michigan Medical School, Ann Arbor, MI, USA;1. Department of Ophthalmology, Corneal Dystrophy Research Institute, Yonsei University College of Medicine, Seoul, South Korea;2. Institute of Vision Research, Severance Biomedical Science Institute, Brain Korea 21 Plus Project for Medical Science, Yonsei University College of Medicine, Seoul, South Korea;1. Rotterdam School of Management, Erasmus University, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands;2. United Bulgarian Bank, 5 Sveta Sofia Street, 1040 Sofia, Bulgaria;3. Rabobank, Croeselaan 18, 3521 CB Utrecht, The Netherlands |
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| 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 between training and local density; on the other hand, higher wages and labor turnover in denser areas reduce training. Overall the relationship can be either positive or negative, depending on the relative strength of these 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. |
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