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Measuring the impact of the Italian CFL programme on the job opportunities for the youths

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Author Info
Bruno Contini (Dip. di Economia and LABORatorio, Torino)
Francesca Cornaglia (LABORatorio, Torino)
Claudio Malpede (R&P, Torino)
Enrico Rettore () (Dip. di Scienze Statistiche, Padova)

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Abstract

The CFL programme has been introduced in 1985 to improve the youths occupational chances. It provides the employers some incentive to recruit young workers by reducing both the labour and the firing costs relative to those they would bear by recruiting older workers. Following the literature, the expected impact of the programme is to increase the eligibles chance to work during the eligibility period as well as to improve their chance to work after the eligibility period thanks to the longer work experience obtained during the eligibility period. A substitution effect might emerge since as subjects get out of eligibility employers might find convenient to replace them by younger still eligible workers. To measure the impact of the programme we exploit the variation over time and across geographical areas of the incentive to hire eligible workers induced by several reforms of the programme as well as its interaction with other incentive schemes.

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Publisher Info
Paper provided by International Conferences on Panel Data in its series 10th International Conference on Panel Data, Berlin, July 5-6, 2002 with number B1-4.

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Date of creation: Mar 2002
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Handle: RePEc:cpd:pd2002:b1-4

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Related research
Keywords: targeted wage subsidy; firing costs; substitution effect;

Find related papers by JEL classification:
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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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.:
  1. Richard Blundell & Alan Duncan & Costas Meghir, 1995. "Estimating labour supply responses using tax reforms," IFS Working Papers W95/07, Institute for Fiscal Studies.
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  2. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126. [Downloadable!] (restricted)
  3. Brian Bell & Richard Blundell & John Van Reenen, 1999. "Getting the unemployed back to work: the role of targeted wage subsidies," IFS Working Papers W99/12, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
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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. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
  2. Tattara, Giuseppe & Canu, Rita, 2005. "Quando le farfalle mettono le ali. Osservazioni sull'ingresso delle donne nel lavoro dipendente
    [Butterfly's wings. Women entrance into the labor market]
    ," MPRA Paper 10354, University Library of Munich, Germany. [Downloadable!]
  3. Grassi, Emanuele, 2009. "EPL and Job Contract Conversion Rate: The Italian CFL Case," MPRA Paper 12679, University Library of Munich, Germany. [Downloadable!]
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