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Welfare reforms and labour supply in Italy

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Author Info

  • Brugiavini, Agar

    ()
    (University of Venice)

Abstract

This paper looks at welfare reforms in Italy and their effects on labour supply. I focus on social security reforms, which have taken place in the 1990s and on labour market reforms. Old age social security expenditure in Italy is high (14% of GDP) and the system has been very generous on early retirement possibilities: the reforms have tried to tackle these issues with mixed results. The labour market reforms have addressed the rigidity of the labour market by making it easier for firms to hire on a short-term basis. However the UI system is limited to open-ended contracts and coverage is also restricted, so that young workers employed in short-term contracts have very little protection from the welfare state.

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File URL: http://www.ifau.se/upload/pdf/se/2009/wp09-29.pdf
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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2009:29.

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Length: 51 pages
Date of creation: 16 Dec 2009
Date of revision:
Handle: RePEc:hhs:ifauwp:2009_029

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Related research

Keywords: Social security system; unemployment insurance; labour supply;

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Cited by:
  1. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.
  2. Forslund, Anders & Fredriksson, Peter, 2009. "Income support systems, labour supply incentives and employment – some cross-country evidence," Working Paper Series 2009:32, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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