Labour Market Areas in Italy. Sandro Cruciani Istat, Italian National Statistical Institute Directorate for territorial and environmental statistics
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1 Labour Market Areas in Italy Sandro Cruciani Istat, Italian National Statistical Institute Directorate for territorial and environmental statistics Workshop on Developing European Labour Market Areas Nuremberg, June 2016
2 Outline of presentation Labour Market Areas (LMAs) in Italy The needs to develop LMAs The reasons to choose LMAs as a new geography to read the country LMAs as a tool for policy Some conclusions 2
3 LMAs in Italy: a brief history In the 1971 Census, for the first time and on experimental basis, questions on commuting were included in the population census questionnaire In collaboration with Irpet and using 1981 commuting data, the first LMAs were produced (1986) The 1991 and 2001 updates (in collaboration with University of Newcastle upon Tyne and University of Leeds) were produced using an adapted version of the first TTWA algorithm 2011 update use the EU-TTWA (also called EURO), 2001 as well was updated : promotion in using LMAs (dedicated ebook, national conference, new estimation and dataset, etc.) 3
4 LMAs in Italy What are they? LMAs are a partition of the country where the bulk of the population lives and works and where, therefore, tends to exercise most of its social and economic relationships Where do they come from? Input data are commuting data from 2011 Population census When have they been released? 17 December 2014 How many are they? There are 611 LMAs in Italy in 2011 (there were 683 in 2001). 4
5 LMAs in Italy: How have they been built? Eurostat Task force on harmonised LMAs stated principles and proposed a method Analysis of Coombes and Bond (2007) Istat has modified an algorithm developed by CBS in R to comply with the comments stemming from the Task Force The result is the EU-TTWA algorithm The R package LabourMarketAreas coupled with its documentation have just been released (free download at 5
6 LMAs in Italy: Why have they been built? A. «historical reasons» To investigate labour markets i.e. a partition of the country where it does make sense to compare estimates on employment/unemployment To Identify Italian industrial districts B. New products for users: LMA as a core geography for Italy LMAs as a geography to read the country, in a functional way related to socio-economic issues LMA as a provider of new perspectives in terms of studies and analysis C. LMAs as a powerful tool for policy 6
7 LMAs in Italy: investigate labour markets Since 2000 Istat produces estimates on employment and unemployment rate by LMAs based on small area estimation methods. Labour Force survey has a sampling design that allows for estimates at NUTS3 level LMAs are not a planned estimate domain and they cut across survey strata A new model has been recently released (see presentation by Michele D Alò) The new estimates for 2015 are going to be produced as well as the complete revised time series ( ) of the estimates for each 2011 LMA 7
8 LMAs in Italy: identify Industrial Districts Industrial Districts (IDs) are LMAs with a particular concentration of small-medium size enterprises in the same main economic specialization (see presentation by Silvia Lombardi) The 2011 Industrial Districts have been published in February 2015 They are 141 in 2011 The analysis of their economic specialization is made using the data on economic units surveyed in the 9 th Industry and Services Census. Industrial districts represent about onefourth of the Italian economic system, both in term of LMAs (23.1% of the total), workers (24.5% of the total) and local units (24.4% of the total). 8
9 LMAs in Italy: a new geography to read the country Since its 2015 Annual Report, Istat has started an extensive use of LMAs as a geography to interpret social and economic phenomena: Some example: Classification by main socio-demographical characteristics based on censuses Classification by prevailing product specialisation New analyses based on integrated data New analyses based on further characteristics of society and land The creation in April 2016 of a new Directorate devoted to Territorial and Environmental Statistics has been a spur to further studies based on this geography 9
10 LMAs in Italy: socio-demographical characteristics 7 homogeneous cluster have been identified using: Demographical structure of population Dynamics of population Type of settlements Level of education Employment status 10
11 LMAs in Italy: A new map of the Italian productive system 6 classes have been identified to classify the Italian productive system: LMAs specialised in textile, clothing and leather (60) Other firms of the «made in Italy» (129) Heavy manufacturing (85) Urban LMAs (91) Non manufacturing LMAs (133) Unspecialised LMAs (113) 11
12 LMAs in Italy: export performance Export 2012 by employed person Dynamics of of export performance 12
13 LMAs in Italy: another example, the land take Strong pressure on territories (compact settlements and urban sprawl) in 160 LMAs LMAs with high density of settlements having large areas (99 LMAs) 13
14 LMAs in Italy: another example, the cultural value The link between regional and cultural resources (the concept of soft-power): Cultural and landscape heritage Productive/cultural infrastructure «La grande bellezza» «The great beauty» (70 LMAs, 8.1 % of the national surface, 38.1 % of the population) is characterised by excellence in both culture and productive vocation 14
15 LMAs in Italy: another example, studying cities Assuming LMAs as daily urban systems (people outline the boundaries of a city, not buildings), we can: Study cities (main urban areas) through LMAs geography Study and investigate relationships between LMAs (fore coming) 15
16 LMAs in Italy: new products and release New releases as far as LMAs are concerned: A dashboard is going to be released LMAs disseminated in LOD format (Linked Open Data) on Istat web site Two e-books with studies and analysis have been published, one dedicated to LMAs and the other to Industrial Districts An e-book dedicated to the issues of urbanisation, using LMAs as comparable geography 16
17 LMAs: a tool for policy The Barca report (2009) to the EU stresses the need of place based policy: A place-based policy is a long-term strategy aimed at tackling persistent under utilisation of potential and reducing persistent social exclusion in specific places through external interventions and multilevel governance. It promotes the supply of integrated goods and services tailored to contexts, and it triggers institutional changes. In a place-based policy, public interventions rely on local knowledge and are verifiable and submitted to scrutiny, while linkages among places are taken into account. AN AGENDA FOR A REFORMED COHESION POLICY, Barca (2009) 17
18 LMAs: a tool for policy In this context statistics are crucial: First: statistically determine the place i.e. develop a geography that is relevant, reliable and comparable in the country as a whole: LMAs; Second: produce statistical indicators to identify the areas which need interventions; Third: produce indicators to measure the effects of the intervention. 18
19 LMAs: a tool for policy Istat started with the release of employment and unemployment rate at LMA level We are going to produce other economic indicator to be released regularly on our web site The number of laws based on LMA to identify area of intervention has been slowly increasing over time Recently a decree to support the industrial crisis areas requires the Regions to use the LMAs geography to decide where to locate funding, using statistical indicator released by Istat This is the area where most of the effort is devoted 19
20 Some conclusions Functional geographies are powerful tools to break down into meaningful regions the territory of a country As LMAs are based on commuting they are able to interpret not only labor related events but also socio-demographic phenomena as the work represents a fundamental part of the life of people LMA geography provides a different analysis of a phenomenon when compared to that stemming from administrative regions. Ecological fallacy is overcome and regions appear with their peculiarities and differences LMA geography has also allowed to overcome the traditional statistics by sector, dimension and administrative regions (stovepipes) and to present integrated statistics The production of statistics at regular interval of time allows to use LMAs as to powerful tool for policy: it allows to identify the areas where to concentrate resources and to monitor changes in time 20
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