Federica Origo (University of Bergamo)
Arif Anindita, Simona Comi, Annalisa Cristini and Mara Grasseni
This paper investigates the impact of Tertiary Vocational Education and Training (TVET) on local development in Italy. Specifically, we study whether the establishment of an ITS (Istituti Tecnologici Superiori) foundation influences firm dynamics (i.e., firm entry and exit), innovation, and local labour market outcomes (i.e., youth unemployment and the NEET rate). The empirical analysis is based on province-level panel data from 2009 to 2023. We exploit variation across provinces and over time in the opening of an ITS foundation and adopt a staggered difference-in-differences (DiD) approach. The results indicate a positive impact of ITS opening on the local economy, particularly in the Centre-South regions. These findings have important policy implications, suggesting that supporting the expansion of ITS institutions may help reduce regional disparities and foster economic convergence.