In this paper we adopt a development accounting view to study the source of the differences in output per worker among Italian regions. In particular, we exploit it to discriminate among physical capital, human capital and TFP. Two methods are compared: the first (the traditional one) is used by Klenow and Rodriguez-Clare (1997), Hall and Jones (1999) and Caselli (2005), while the second is based on the work by Caselli and Coleman (2006). We stress that the Caselli and Coleman’s technique handles the roles of technology and education in a better way and permits to distinguish the contribution of human capital and TFP in determining the skill premium. We obtain that differences in technological endowments appear to explain the gaps across Italy. Also, the analysis emphasizes the existence of barriers to adoption that block the diffusion of technology in the Southern regions.
Keywords: Total factor productivity, regional gaps, technological diffusion
Jel Code: O47, O33, R11