Abstract
This paper presents a new shift-share model to decompose the employment growth rate of a territorial unit by taking into consideration the association between industry mix and firm legal status effects measured in its neighborhood. We explicitly consider this kind of association to go beyond the problem of asymmetry found in a previous work. The empirical application refers to the data collected in the Italian Business Statistical Register and, in particular, regional employment figures in Friuli Venezia Giulia (NUTS2 level), for 219 territorial units (LAU2 level) and 12 Local Labour Systems (LLS), for the years 2001 and 2004.
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