Firm entry and exit in Italian provinces and the relationship with unemployment |
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| Authors: | Martin Carree Enrico Santarelli Ingrid Verheul |
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| Institution: | (1) University of Maastricht, Maastricht, The Netherlands;(2) University of Bologna, Bologna, Italy;(3) Erasmus University Rotterdam, Rotterdam, The Netherlands |
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| Abstract: | This study investigates the influence of the unemployment rate on firm entry, exit and net entry in Italian provinces. We
attempt to explain these market dynamics in six different sectors, including manufacturing, construction, commerce, hotels
and restaurants, transport and financial services. We control for other regional factors, such as patenting activity, economic
growth, economic welfare, tourism, industrial districts and whether being a major city. Findings indicate that the effects
of unemployment on entry and exit are dependent upon the sector under study, but are mainly negative. This suggests a lack
of dynamics in the Italian regional labor markets.
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| Keywords: | Firm entry and exit Unemployment Italian provinces |
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