Hiring Incentives and Labour Force Participation in Italy

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Hiring Incentives and Labour Force Participation in Italy

Author Info

Piero Cipollone () (Bank of Italy, Research Department)
Corrado Di Maria () (Tilburg University)
Anita Guelfi () (Confindustria, Research Department)

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Abstract

A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We investigate this relationship within a policy evaluation framework; in particular, we examine how labour supply reacted in Italy to a recent subsidy in favour of open-ended contracts. This subsidy increased labour force participation by 1.4% in 2001 and 2.1% in 2002. This increase was concentrated on males aged 35-54, with a low or at most a secondary schooling level.

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Publisher Info
Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 63 (2004)
Issue (Month): 2 (November)
Pages: 161-203
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Handle: RePEc:gde:journl:gde_v63_n2_p161-203

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Paper
- Piero Cipollone & Corrado Di Maria & Anita Guelfi, 2005. "Hiring incentives and labour force participation in Italy," Temi di discussione (Economic working papers) 552, Bank of Italy, Economic Research Department. [Downloadable!]

Find related papers by JEL classification:
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

References listed on IDEAS
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.:

Guiso, Luigi & Parigi, Giuseppe, 1996. "Investment and Demand Uncertainty," CEPR Discussion Papers 1497, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Guiso, L. & Parigi, G., 1996. "Investment and Demand Uncertainty," Papers 289, Banca Italia - Servizio di Studi.
- Luigi Guiso & Giuseppe Parigi, 1999. "Investment And Demand Uncertainty," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 185-227, February. [Downloadable!] (restricted)
Andrea Brandolini & Piero Cipollone & Eliana Viviano, 2006. "Does The Ilo Definition Capture All Unemployment?," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 153-179, 03. [Downloadable!] (restricted)
Other versions:
- Andrea Brandolini & Piero Cipollone & Eliana Viviano, 2004. "Does the ILO Definition Capture All Unemployment?," Temi di discussione (Economic working papers) 529, Bank of Italy, Economic Research Department. [Downloadable!]
cipollone piero & Anita Guelfi, 2003. "tax credit policy and firms' behaviour: the case of subsidy to open-end labour contract in italy," Temi di discussione (Economic working papers) 471, Bank of Italy, Economic Research Department. [Downloadable!]
Stephen R. G. Jones & W. Craig Riddell, . "The Measurement Of Unemployment: An Empirical Approach," Canadian International Labour Network Working Papers 09, McMaster University. [Downloadable!]
Other versions:
- Jones, S.R.G. & Riddell, W.C., 1993. "The Measurement of Unemployment: An Empirical Approach," UBC Departmental Archives 93-48, UBC Department of Economics.
- Stephen R. G. Jones & W. Craig Riddell, 1999. "The Measurement of Unemployment: An Empirical Approach," Econometrica, Econometric Society, vol. 67(1), pages 147-162, January.
Garibaldi, Pietro & Wasmer, Etienne, 2003. "Equilibrium Search Unemployment, Endogenous Participation and Labour Market Flows," CEPR Discussion Papers 3986, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Pietro Garibaldi & Etienne Wasmer, 2005. "Equilibrium Search Unemployment, Endogenous Participation, And Labor Market Flows," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 851-882, 06. [Downloadable!] (restricted)

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This page was last updated on 2009-11-30.

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