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Brunello, G., Lupi, C., Labor taxes in local labor markets: Evidence from Italian regions
Giornale degli Economisti e Annali di Economia (2005)
  • Giorgio Brunello, University of Padua
  • Claudio Lupi, University of Molise
  • Patrizia Ordine, University of Calabria
Abstract

By focusing on the Italian experience, we ask whether the relationship between labor taxes and unemployment varies across regions. In spite of similar national labor market institutions, we show that this relationship is significantly stronger in the highly industrialized North than in the less developed South, where unemployment is much higher. An important source of variation in the regional responsiveness of unemployment originates from the fact that regional gross wages in the North increase more than in the South in response to a hike in labor taxes.

Keywords
  • Regional unemployment,
  • labour taxes
Publication Date
2005
Citation Information
Giorgio Brunello, Claudio Lupi and Patrizia Ordine. "Brunello, G., Lupi, C., Labor taxes in local labor markets: Evidence from Italian regions" Giornale degli Economisti e Annali di Economia Vol. 64 Iss. 1 (2005)
Available at: http://works.bepress.com/claudio_lupi/10/