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Matching Efficiency and Labour Market Reform in Italy: A Macroeconometric Assessment

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  • Sergio Destefanis
  • Raquel Fonseca

Abstract

A matching theory approach is used to assess the impact on the Italian labour market of the 1997 Treu Act (legge Treu), which considerably eased the regulation of temporary work and favoured its growth in Italy. We re-parameterize the matching function as a Beveridge Curve and estimate it as a production frontier, finding huge differences in matching efficiency between the South and the rest of the country. The Treu Act appears to have improved matching efficiency in the North of the country, particularly for skilled workers, but also to have strengthened competition among skilled and unskilled workers, especially in the South. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 21 (2007)
Issue (Month): 1 (03)
Pages: 57-84

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Handle: RePEc:bla:labour:v:21:y:2007:i:1:p:57-84

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Cited by:
  1. Sabine Klinger & Thomas Rothe, 2012. "The Impact of Labour Market Reforms and Economic Performance on the Matching of the Short‐term and the Long‐term Unemployed," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 90-114, 02.
  2. Tomasz Jeruzalski & Joanna Tyrowicz, 2009. "(In)Efficiency of Matching - the Case of a Post-transition Economy," Working Papers 2009-10, Faculty of Economic Sciences, University of Warsaw.
  3. Destefanis, Sergio, 2014. "Dualismo e declino nel territorio italiano. Il ruolo delle competenze
    [Dualism and Decline across the Italian Economy. The Role of Skills]
    ," MPRA Paper 55391, University Library of Munich, Germany.
  4. Destefanis, Sergio & Mastromatteo, Giuseppe, 2010. "Wage Inequality and Labour-market Performance. A Role for Corporate Social Responsibility - Disuguaglianza salariale e performance del mercato del lavoro," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 63(1), pages 91-120.
  5. Fahr, René & Sunde, Uwe, 2005. "Regional Dependencies in Job Creation: An Efficiency Analysis for Western Germany," IZA Discussion Papers 1660, Institute for the Study of Labor (IZA).
  6. Annalisa Lucarelli, 2011. "Vacancies and Hirings: Preliminary Evidence from a Survey on Italian Employers," Rivista di statistica ufficiale, ISTAT - Italian National Institute of Statistics - (Rome, ITALY), vol. 13(2-3), pages 21-53.
  7. Cardullo, Gabriele & Guerrazzi, Marco, 2013. "The Cyclical Volatility of Equilibrium Unemployment and Vacancies: Evidence from Italy," MPRA Paper 51726, University Library of Munich, Germany.
  8. Klinger, Sabine & Rothe, Thomas, 2010. "The impact of labour market reforms and economic performance on the matching of short-term and long-term unemployed," IAB Discussion Paper 201013, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  9. Carlo Di Giorgio & Massimo Giannini, 2012. "A comparison of the Beveridge curve dynamics in Italy and USA," Empirical Economics, Springer, vol. 43(3), pages 945-983, December.
  10. Carlo Altavilla & Floro Ernesto Caroleo, 2011. "Asymmetric Effects of National-based Active Labour Market Policies," CSEF Working Papers 293, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  11. Altavilla, Carlo & Caroleo, Floro Ernesto, 2009. "Unintended Effects of National-based Active Labour Market Policies," IZA Discussion Papers 4045, Institute for the Study of Labor (IZA).
  12. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers 1204, The Institute of Economics, Zagreb.
  13. Yang Liu, 2011. "Labor market matching with heterogeneous job seekers in China," Economics Bulletin, AccessEcon, vol. 31(3), pages 1980-1992.
  14. Marianna Belloc & Riccardo Tilli, 2013. "Unemployment by gender and gender catching-up: Empirical evidence from the Italian regions," Papers in Regional Science, Wiley Blackwell, vol. 92(3), pages 481-494, 08.
  15. Jonathan Barr & Emma Clarence & Francesca Froy & Sergio Destefanis & Chris Warhurst, 2012. "Local Job Creation: How Employment and Training Agencies Can Help - The Labour Agency of the Autonomous Province of Trento, Italy," OECD Local Economic and Employment Development (LEED) Working Papers 2012/17, OECD Publishing.

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