Recession, resilience, local labour markets: wealthier is better?

Economic expansion and recession have shaped the long-term evolution of local economic systems, exemplifying causes and consequences of territorial disparities and alimenting the debate on regional resilience. The present study investigates changes (2004–2013) in the spatial structure of two labour market indicators in Italy (participation and unemployment rates) during the most recent expansion and recession waves, so as to identify socioeconomic and territorial factors influencing short-term performances of local labour markets. Specialization in advanced industry (such as precision mechanics) is one of the most important factors associated to low employment losses during recession in Italy. Our results offers a contribution to the debate on regional resilience by reconnecting it to the more general issue of spatial disparities. We aim to shed light on the impact of institutional change and external shocks on the evolutionary path of local economic systems.