Work

Does labour market area affect local unemployment rates? Evidence from mono-centric and polycentric Italies, 2006–2022

Year: 2026

Type: article

Abstract: We reconnect the economic and geographical dimensions of labour market dynamics by examining whether settlement models affect local labour markets’ performances in Italy. Results of spatial Durbin regressions outline a quadratic relationship between unemployment and market area, with lower rates in bigger and smaller districts. Tourism and ‘Made-in-Italy’ industries had a positive impact on local unemployment. Conversely, urban districts or those located in EU-Objective-2 regions exhibited higher unemployment rates. Local regressions demonstrate how diversified market areas consolidate spatial disparities in unemployment rates in mono-centric regions like Southern Italy. Economic downturns suggest the importance of polycentric development to achieve balanced job markets.

Source: Papers of the Regional Science Association

DOI: 10.1016/j.pirs.2026.100141

Authors: Alessandro Muolo, Emma Bruno, Rosalia Castellano, Luca Salvati, Gennaro Punzo

Institutions: Gran Sasso Science Institute, Sapienza University of Rome, Parthenope University of Naples

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: gold

Estimated APC paid: $2,740