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Functional Regions: Local Labour Market Areas in Italy

Functional Regions: Local Labour Market Areas in Italy. Giovanni Barbieri, Sandro Cruciani, Francesca Gambarotto NESIS Seminar June 26 th , 2003. Aim of the Exercise . To map out local development In Italy Using a very detailed territorial grid Over 25 years

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Functional Regions: Local Labour Market Areas in Italy

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  1. Functional Regions: Local Labour Market Areas in Italy Giovanni Barbieri, Sandro Cruciani, Francesca Gambarotto NESIS Seminar June 26th, 2003

  2. Aim of the Exercise • To map out local development • In Italy • Using a very detailed territorial grid • Over 25 years • (from the 1971 census to the 1996 intermediate census and beyond) Functional regions in Italy

  3. Relevance of the Exercise • To explore new regional classification systems • To test it in the analysis of sub-national socio-economic structures • To spot trends based on past evolution Functional regions in Italy

  4. Territorial Grid • Local Labour Market Areas (LLMAs) • Based on information on commuting between house and workplace across municipalities • Istat (1997). I sistemi locali del lavoro. Argomenti no. 10. Roma. • Features: • Geographical: The grid of LLMAs covers the whole territory of Italy, with no residuals • Statistical: Transparent, internationally acknowledged method • Economic: LLMAs from an economic standpoint approximate self-contained labour markets Functional regions in Italy

  5. The 1991 Grid • The latest available territorial grid is used (based on the results of the 1991 population census) • LLMAs are 784 • Kept constant over the whole 1971-1996 period. Three reasons for this choice: • Interest in dynamics • The territorial grid itself is affected by growth processes • Possible under-estimation of agglomeration Functional regions in Italy

  6. LLMAs(1991) Functional regions in Italy

  7. Clustering LLMAs • Based on sectoral characteristics in the more recent available industrial census (1996). Namely: • The variable considered is employment in local units (establishments) • Industries are broken down in 51 classes • The breakdown of manufacturing is more detailed • The variable for each LLMA is obtained by aggregation of municipal data Functional regions in Italy

  8. Clusters Functional regions in Italy

  9. Non-specialized Functional regions in Italy

  10. Non-manu-facturing Functional regions in Italy

  11. Light manu-facturing Functional regions in Italy

  12. Other manu-facturing Functional regions in Italy

  13. Main Features of Clusters Functional regions in Italy

  14. Classifying LLMAs according to employment rates • Ratio of this choice: • in the absence of information on value added produced in LLMAs, employment rate an indicator of their performance • In fact: • Value added at the LLMA level (1996-2000) has been recently published by Istat (June 17, 2003) Functional regions in Italy

  15. Per capita Value added(2000) Functional regions in Italy

  16. Employment Rate Dynamics 1971-1996 • A way to introduce the concept of “successful” and “unsuccessful” LLMAs • From a technical point of view, this is done by considering the transition matrix comparing employment rates in 1971 and 1996 • For a similar approach, see: OECD, Territorial Review of Italy, 2001 Functional regions in Italy

  17. Employment Rate Dynamicsby Macro-Region Functional regions in Italy

  18. The Derived Tassonomy Functional regions in Italy

  19. LLMAsPerformance Functional regions in Italy

  20. The Data-Base • Censuses 1971 through 1991, with updates to 1996 where possible • 5 main areas: • Socio-demographic features • Dwellings • Employment and labour market • Economy and labour market • Economy and production Functional regions in Italy

  21. Socio-Demographic Features • Population density • Masculinity rate • Dependence rate • Turnover of working population • Average dimension of households • Education rates Functional regions in Italy

  22. Dwellings • Share of occupied dwellings • Rooms per dweller • Average number of rooms • Ownership • Time of construction • Services • Water • WC and bathroom • Central heating Functional regions in Italy

  23. Economy and Labour Market • Employed persons in local units, in total and by 8 sectors of activity • Average size of local units • Localization quotients • Specialization indexes Functional regions in Italy

  24. Economy and Production • Activity rate (total and by sex) • Employment rate (total and by sex) • Share of employed persons by sector of activity • Share of employed persons by kind of occupation (employee/self-employed) • Entrepreneuriality rate Functional regions in Italy

  25. The Results: A Few Examples Functional regions in Italy

  26. Population Functional regions in Italy

  27. Density Functional regions in Italy

  28. Dependence Rate Functional regions in Italy

  29. Education Rate (1991) Functional regions in Italy

  30. And so on… Functional regions in Italy

  31. Preliminary results • Urban LLMAs seem to be the more successful • Density is destiny • Diversity seems to be a key to success • Overspecialisation not an advantage in the long run Functional regions in Italy

  32. Next Steps • Profiling successful and unsuccessful LLMAs • Discriminant analysis • How were characterized in 1971 the dynamic LLMAs? • Which problems face the various types of clusters? • Are there policy lessons to learn? Functional regions in Italy

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