EU Study on Skill Mismatches and Capital Misallocation in Italy
Brussels, 17 October 2014
Recent research shows that very heterogeneous firms coexist within the same industry. Understanding the drivers of productivity growth at the firm level is thus necessary to understand the very root of Italy’s economic malaise and competitiveness losses. Moreover, the large number of observations available at the micro level should increase the robustness of the analysis than available ones at macro and sectoral level.
The study would seek to provide micro-based evidence of the extent, drivers and consequences of labour and capital misallocation in the Italian economy.
The ultimate aim is to uncover the root of Italy’s slow growth since the mid-1990s.
The project should cover as a minimum (potential candidates might have additional suggestions):
Assessment of the extent of the misallocation by looking at correlation/causality between TFP or valued added growth and a set of key explanatory variables in order to identify the most relevant ones. In particular it could focus on: i) investment decisions; ii) IT intensity; iii) characteristics of employees; iv) hiring practices; v) types of contract offered to workers; vi) firm ownership characteristics.
Understanding the drivers of misallocation by disentangling the different factors listed above (among others).
Assessment of the impact of misallocation by analysing the effects that resource misallocation at the micro level has at the macro level with an emphasis on TFP growth.
Draw policy conclusions on how to improve capital and labour allocation in the Italian context.
The duration of the project is set at approximately 10 months. The budget foreseen is in the range of 35 000 – 50 000 EUR.
Deadline: 24 October 2014
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