Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy
AbstractAccording to the aims of the labour market reforms of the 90s implemented in many European countries, workers may stay at their first job for a shorter time, but should be able to switch jobs easily. This would generate a trade-off between job opportunities and job stability. This paper addresses this issue using administrative longitudinal data for Germany and Italy, two countries which have undergone changes in regulations that can be summarised under the header of “deregulation”.The estimated piecewise constant job and employment duration models show that changes in the durations of the first job and employment - measured as the sum of multiple consecutive jobs - are observed in periods of labour market reforms. However, the existence of a trade-off is not confirmed by the results. In Germany, men have experienced an increase in employment stability over time, mated with somewhat longer job durations, while women have not benefitted from an increase in employment durations as a compensation for the marked decrease in their first job durations. In Italy, employment stability of the new entrants of both sexes has not improved after the reforms. The reduction in the duration of the first job has not been counterbalanced by an increase in the opportunity to find rapidly another job. These results suggest that the objective of increasing job opportunities by means of labour market deregulation has not been fully achieved.
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Bibliographic InfoPaper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Economics with number wp2010_06.rdf.
Length: 42 pages
Date of creation: 2010
Date of revision:
employment duration; work career; tenure; precarious jobs; labour market reforms; mixed proportional hazard;
Other versions of this item:
- Giannelli, Gianna Claudia & Jaenichen, Ursula & Villosio, Claudia, 2009. "Have Labour Market Reforms at the Turn of the Millennium Changed Job Durations of the New Entrants? A Comparative Study for Germany and Italy," IZA Discussion Papers 4591, Institute for the Study of Labor (IZA).
- Gianna Claudia Giannelli & Ursula Jaenichen & Claudia Villosio, 2009. "Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy," LABORatorio R. Revelli Working Papers Series 95, LABORatorio R. Revelli, Centre for Employment Studies.
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-24 (All new papers)
- NEP-EUR-2010-04-24 (Microeconomic European Issues)
- NEP-LAB-2010-04-24 (Labour Economics)
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