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Uncertainty, Flexibility Gap and Labour Demand in the Italian Economy

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  • Marcello Signorelli

Abstract

In this paper we analyse the effects of changes in the degree of uncertainty of the economic system and in the "flexibility gap", deriving from the combined evolution of the degrees of uncertainty and flexibility of the economic system (in particular, labour market flexibility), on regular and irregular labour demand. On the basis of a simple qualitative model, we give a partial interpretation of some stylized facts of the Italian economy during the last decades. We argue that the low uncertainty and flexibility gap in the 1950s and 1960s, their remarkable increases in the 1970s, their inadequate reduction in the 1980s and the new increase of uncertainty and flexibility gap in the first half of the 1990s, have had a considerable influence on the quantity and quality of the "investment in employment" of Italian economy. The higher degree of uncertainty and the inadequate degree of flexibility of the Italian economic system are likely to have contributed towards the lower regular employment rate, compared to the main industrialized countries, and to high irregular employment. An adequate economic policy for reducing the uncertainty of the economic system together with a structural economic policy for increasing the flexibility of the economic system (in particular, an active labour policy for increasing the flexibility of the labour market), would be likely to produce positive effects on the quantity and quality of labour demand, contributing towards reducing unemployment. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 1997.

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Bibliographic Info

Article provided by CEIS in its journal Labour.

Volume (Year): 11 (1997)
Issue (Month): 1 (04)
Pages: 141-175

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Handle: RePEc:bla:labour:v:11:y:1997:i:1:p:141-175

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Citations

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Cited by:
  1. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan, vol. 54(2), pages 231-250, June.
  2. Cristiano Perugini, 2008. "Employment and Unemployment in the Italian Provinces," Quaderni del Dipartimento di Economia, Finanza e Statistica 49/2008, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  3. Cristiano Perugini & Marcello Signorelli, 2005. "Employment Differences, Convergences and Similarities in Italian Provinces," Quaderni del Dipartimento di Economia, Finanza e Statistica 07/2005, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  4. Marcello Signorelli, 2005. "Employment and policies in Europe: a regional perspective," Quaderni del Dipartimento di Economia, Finanza e Statistica 05/2005, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  5. Maurizio Bovi, 2004. "The Dark, And Independent, Side Of Italy," ISAE Working Papers 46, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  6. Cristiano Perugini & Marcello Signorelli, 2007. "Labour Market Performance Differentials and Dynamics in EU-15 Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 209-262, September.

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