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 di§erent e§ects on the Italian regions. We will refer to the ìresilienceî to describe the adaptive capacity of the regions to withstand the shock of an economic recessions. Empirical results suggest that regions with a larger share of manufacturing or a higher number of temporary workers su§ered to a greater extent than others during recessions. In contrast, regions with higher percentages of public employees and service industries were better able to ìresistî the negative phases of the economy. Moreover the recent crisis has exacerbated the strong gaps between North and South making rebalancing policies necessary to place the country on a sustainable growth path.