This paper quantifies the effect of a local labor demand shock in the tradable sector on the employment in the non-tradable sector for Italy. Following Moretti (2010) and Moretti and Thulin (2013) we analyse for Italy's case the effect on the employment in tradable and non-tradable sector due to...

This dissertation consists of six self-contained chapters that are related to the behavior of firms and politicians in a broader sense. After an introduction to the topic, the first part of the dissertation elaborates on how institutional and political framework conditions influence the behavior...