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Impact of Changes in Consumer Preferences on Sectoral Labour Reallocation: Evidence from the Italian Economy
Author(s) -
Addessi William,
Pulina Manuela,
Sallusti Federico
Publication year - 2017
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12179
Subject(s) - economics , consumption (sociology) , preference , revealed preference , empirical evidence , consumer expenditure , labour economics , econometric analysis , econometrics , macroeconomics , microeconomics , aggregate expenditure , social science , philosophy , epistemology , sociology
This study empirically investigates the impact of changes in consumer preferences on labour reallocation across the Italian economic sectors. For this purpose, coherent sectoral time series of consumer preferences and labour units are constructed from Italian national accounts and consumption expenditure data. In line with recent firm‐level evidence, empirical findings indicate a positive and significant effect of preference changes on labour reallocation. Results are robust to several econometric specifications, different procedures to elicit preference changes, as well as the introduction of time‐varying price coefficient and sector‐specific effects of total consumption expenditure.