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Financial support to permanent jobs. The Italian case

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  • Cipollone Piero
  • Guelfi Anita

Abstract

In the past decade fixed-term contracts have been widely used to ease the regulatory burden in several European labour markets. Since there is some concern that they might be a dead-end for many workers, policy makers have intervened to increase transitions from fixedterm to open-end contracts. The effects of these interventions have not yet been thoroughly studied. This paper is a contribution to fill this gap. We look at a recent Italian policy designed to foster hiring with open-end rather than with fixed-term contracts. Our results seem to indicate that most of the financial support was wasted because of the large dead-weight loss associated with the program. There exists some weak evidence that better educated workers benefited from the introduction of the tax credit, especially in the South.

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Bibliographic Info

Article provided by Società editrice il Mulino in its journal Politica economica.

Volume (Year): (2006)
Issue (Month): 1 ()
Pages: 51-76

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Handle: RePEc:mul:je8794:doi:10.1429/21830:y:2006:i:1:p:51-76

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Cited by:
  1. Tattara, Giuseppe & Valentini, Marco, 2009. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? : revisiting the Italian on-the-job training programme," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 42(3), pages 197-212.

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