Economia Politica

, Volume 35, Issue 2, pp 313–336 | Cite as

Productivity and employment dynamics: new evidence from Italian regions

  • Bianca Biagi
  • Maria Gabriela LaduEmail author


When productivity growth accelerates job destruction and job creation occur simultaneously. However, what effect this has on the whole economy depends on whether job creation or destruction dominates. We investigate what occurred in Italy from 1977–2003, a time when some labour market reforms were introduced, creating increased flexibility. We also investigate if there were any systematic regional differences in the employment or productivity dynamics and whether these dynamics experienced any sort of spatial externalities. The findings indicate that overall, the effect of job destruction prevailed and that the labour market reforms had a negative impact on employment.


Total factor productivity Job creation Job destruction Labor market reforms Spatial externalities 

JEL Classification

J01 J20 O30 R11 R23 


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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.University of Sassari and CRENoSSassariItaly

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