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The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers

Author

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  • Adriano Paggiaro
  • Enrico Rettore
  • Ugo Trivellato

Abstract

Liste di mobilità (LM) is an Italian labour market programme targeted to dismissed workers. There is a ‘passive’ component granting monetary benefits to employees dismissed by firms larger than 15 employees, and an ‘active’ component providing an employment subsidy to any firm hiring workers from the LM. Eligibility duration varies with the worker’s age at dismissal. We exploit the variability of these provisions to evaluate the impact of extending the duration of eligibility on re-employment probabilities and wages over the 36 months subsequent to enrolment in the programme. The average treatment effect is identified via a Regression Discontinuity Design. A major negative impact emerges for workers aged 50 or more granted the monetary benefit.

Suggested Citation

  • Adriano Paggiaro & Enrico Rettore & Ugo Trivellato, 2008. "The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers," CESifo Working Paper Series 2340, CESifo.
    • Handle: RePEc:ces:ceswps:_2340
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    References listed on IDEAS

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    1. Adriano Paggiaro & Enrico Rettore & Ugo Trivellato, 2009. "The Effect of a Longer Eligibility to a Labour Market Programme for Dismissed Workers," LABOUR, CEIS, vol. 23(1), pages 37-66, March.

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    More about this item

    Keywords

    active labour market policies; regression discontinuity design;

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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