The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers
AbstractListe 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.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2340.
Date of creation: 2008
Date of revision:
active labour market policies; regression discontinuity design;
Other versions of this item:
- Rettore, Enrico & Paggiaro, Adriano & Trivellato, Ugo, 2008. "The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers," IZA Discussion Papers 3633, Institute for the Study of Labor (IZA).
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
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