Economic crisis and rising gaps North-South: evidence from the Italian regions

This study investigates the economic crises that occurred in Italy between 1970 and 2011, referring in particular to the employment level and the different effects on the Italian regions. Empirical results suggest that regions with a larger share of manufacturing or a higher number of temporary workers suffered to a greater extent than others during reces-sions. In contrast, regions with higher percentages of public employees and service indus-tries were better able to ‘resist ’ the negative phases of the economy. Moreover, the recent crisis has exacerbated the strong imbalances between the North and South making rebal-ancing policies necessary to place the country on a sustainable growth path.