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How Much Does Hiring and Firing Cost? Survey Evidence from a Sample of Italian Firms

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  • Alessandra Del Boca
  • Paola Rota

Abstract

We analyse the Italian labour market, which is typically considered to be highly regulated. We focus on the costs imposed on firms by the institutional environment in which they operate, and on the adjustment strategies that they pursue as a result. We have followed two complementary approaches: the analysis of the development of the laws relating to hiring and firing, together with a set of interviews of 61 manufacturing firms. This also allows us to quantify the extent of turnover costs on the total labour costs. Hiring costs, which include recruiting and training, range between 2.0 and 2.6 months of labour costs; firing costs range from less than half a monthly labour cost to 20 months of labour costs in cases of conflict. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd. 1998.

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Bibliographic Info

Article provided by CEIS in its journal Labour.

Volume (Year): 12 (1998)
Issue (Month): 3 (09)
Pages: 427-449

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Handle: RePEc:bla:labour:v:12:y:1998:i:3:p:427-449

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Cited by:
  1. Lia Pacelli, 2002. "Fixed Term Contracts, Social Security Rebates and Labour Demand in Italy," LABORatorio R. Revelli Working Papers Series 7, LABORatorio R. Revelli, Centre for Employment Studies.
  2. Christian Grund, 2004. "Severance Payments for Dismissed Employees Severance Payments for Dismissed Employees in Germany," Bonn Econ Discussion Papers bgse4_2004, University of Bonn, Germany.
  3. Stephen DeLoach & Jennifer Platania, 2013. "The Macroeconomic Consequences of Financing Health Insurance," International Advances in Economic Research, Springer, vol. 19(2), pages 107-129, May.
  4. Marco Malgarini & Massimo Mancini & Lia Pacelli, 2011. "Temporary hires and innovative investments," Working papers 19, Former Department of Economics and Public Finance "G. Prato", University of Torino.
  5. MÃ¥nsson, Jonas, 2006. "A Note on the Shape of the Cost Function for Recruiting Labour," CAFO Working Papers 2006:4, Centre for Labour Market Policy Research (CAFO), School of Business and Economics, Linnaeus University.
  6. repec:iza:izadps:dp875 is not listed on IDEAS

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