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

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Author Info
Sergio Destefanis
Raquel Fonseca

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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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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2006.00368.x
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Article provided by CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd 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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 91-109, Spring.
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  3. Jovanovic, Boyan, 1984. "Matching, Turnover, and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 108-22, February. [Downloadable!] (restricted)
  4. Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2002. "A Matching Model Of Crowding-Out And On-The- Job Search (With An Application To Spain)," Economics Working Papers we022809, Universidad Carlos III, Departamento de Economía. [Downloadable!]
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  5. Giuseppe Bertola, 2004. "A Pure Theory of Job Security and Labour Income Risk," Review of Economic Studies, Blackwell Publishing, vol. 71(1), pages 43-61, 01. [Downloadable!] (restricted)
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  6. Ibourk, Aomar & Maillard, Bénédicte & Perelman, Sergio & Sneessens, Henri, 2001. "The Matching Efficiency of Regional Labour Markets A Stochastic Production Frontier Estimation, France 1990-1995," IZA Discussion Papers 339, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Burda, Michael C. & Profit, Stefan, 1996. "Matching across space: Evidence on mobility in the Czech Republic," Labour Economics, Elsevier, vol. 3(3), pages 255-278, October. [Downloadable!] (restricted)
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  8. Pekka Ilmakunnas & Hanna Pesola, 2003. "Regional Labour Market Matching Functions and Efficiency Analysis," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 17(3), pages 413-437, 09. [Downloadable!] (restricted)
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  14. Simon Burgess & Stefan Profit, 2001. "Externalities in the Matching of Workers and Firms in Britain," CEP Discussion Papers dp0490, Centre for Economic Performance, LSE. [Downloadable!]
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  16. Warren, Ronald S, Jr, 1991. "The Estimation of Frictional Unemployment: A Stochastic Frontier Approach," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 373-77, May. [Downloadable!] (restricted)
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  20. Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute. [Downloadable!]
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  23. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Floro Ernesto Caroleo – Gianluigi Coppola, 2005. "The Impact of the Institutions on Regional Unemployment Disparities," CELPE Discussion Papers 98, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
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  2. René Fahr & Uwe Sunde, 2006. "Regional dependencies in job creation: an efficiency analysis for Western Germany," Applied Economics, Taylor and Francis Journals, vol. 38(10), pages 1193-1206, June. [Downloadable!] (restricted)
    Other versions:
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