We analyze the effects of Italian labor market reforms “at the margin” on the probability of exiting from non-employment and entering permanent and temporary contracts, using WHIP data for the period 1985–2004. We find that the reforms have strengthened the duration dependence parameter, meaning a stronger labor market gap in employment opportunities between the short- and long-term non-employed. We suggest that in a flexible labor market, long-term unemployment is used by firms as a screening device to detect less productive workers. We also find evidence of greater differences in employment opportunities according to gender, and of reduced differences between regional labor markets.

Mussida, C., Sciulli, D., Flexibility Policies and Re-employment Probabilities in Italy, <<THE B.E. JOURNAL OF ECONOMIC ANALYSIS & POLICY>>, 2015; 15 (2): 621-651. [doi:10.1515/bejeap-2013-0180] [http://hdl.handle.net/10807/65386]

Flexibility Policies and Re-employment Probabilities in Italy

Mussida, Chiara;Sciulli, Dario
2015

Abstract

We analyze the effects of Italian labor market reforms “at the margin” on the probability of exiting from non-employment and entering permanent and temporary contracts, using WHIP data for the period 1985–2004. We find that the reforms have strengthened the duration dependence parameter, meaning a stronger labor market gap in employment opportunities between the short- and long-term non-employed. We suggest that in a flexible labor market, long-term unemployment is used by firms as a screening device to detect less productive workers. We also find evidence of greater differences in employment opportunities according to gender, and of reduced differences between regional labor markets.
Inglese
Mussida, C., Sciulli, D., Flexibility Policies and Re-employment Probabilities in Italy, <<THE B.E. JOURNAL OF ECONOMIC ANALYSIS & POLICY>>, 2015; 15 (2): 621-651. [doi:10.1515/bejeap-2013-0180] [http://hdl.handle.net/10807/65386]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/65386
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