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The Italian Labor Market: Recent Trends, Institutions, and Reform Options

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  • Martin Schindler

Abstract

Despite improvements in labor market performance over the past decade, owing in part to past reforms, Italy's employment and productivity outcomes continue to lag behind those of its European peers. This paper reviews Italy's institutional landscape and labor market trends from a cross-country perspective, and discusses possible avenues for further reform. The policy discussion draws on international reform experience and on simulations based on a calibrated labor market matching model. A key lesson is that the details of reform design, and the sequencing of reforms, matter greatly for labor market outcomes and for the fiscal costs associated with these reforms.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/47.

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Length: 24
Date of creation: 01 Mar 2009
Date of revision:
Handle: RePEc:imf:imfwpa:09/47

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Related research

Keywords: Labor markets; Labor market reforms; Labor productivity; Economic models;

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References

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  1. Ljungqvist, Lars & Sargent, Thomas J., 1997. "The European Unemployment Dilemma," Working Paper Series in Economics and Finance 178, Stockholm School of Economics.
  2. Olivier Blanchard & Francesco Giavazzi, . "Macroeconomic effects of regulation and deregulation in goods and labor markets," Working Papers 187, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  3. Annabelle Mourougane & Lukas Vogel, 2009. "Speed of Adjustment to Selected Labour Market and Tax Reforms," Comparative Economic Studies, Palgrave Macmillan, vol. 51(4), pages 500-519, December.
  4. Amable, Bruno & Demmou, Lilas & Gatti, Donatella, 2007. "Employment Performance and Institutions: New Answers to an Old Question," IZA Discussion Papers 2731, Institute for the Study of Labor (IZA).
  5. Edward C. Prescott, 2003. "Why do Americans work so much more than Europeans?," Staff Report 321, Federal Reserve Bank of Minneapolis.
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  7. Jespersen, Svend T. & Munch, Jakob R. & Skipper, Lars, 2008. "Costs and benefits of Danish active labour market programmes," Labour Economics, Elsevier, vol. 15(5), pages 859-884, October.
  8. Rachel Griffith & Rupert Harrison & Gareth Macartney, 2006. "Product market reforms, labour market institutions and unemployment," IFS Working Papers W06/06, Institute for Fiscal Studies.
  9. Marcello Estev�o, 2007. "Labor Policies to Raise Employment," IMF Staff Papers, Palgrave Macmillan, vol. 54(1), pages 113-138, May.
  10. Giuseppe Fiori & Giuseppe Nicoletti & Stefano Scarpetta & Fabio Schiantarelli, 2007. "Employment Outcomes and the Interaction Between Product and Labor Market Deregulation: Are They Substitutes or Complements?," Boston College Working Papers in Economics 663, Boston College Department of Economics, revised 08 Aug 2008.
  11. Rogerson, Richard & Schindler, Martin, 2002. "The welfare costs of worker displacement," Journal of Monetary Economics, Elsevier, vol. 49(6), pages 1213-1234, September.
  12. de Neubourg, Chris & Castonguay, Julie & Roelen, Keetie, 2007. "Social safety nets and targeted social assistance : lessons from the European experience," Social Protection Discussion Papers 41529, The World Bank.
  13. Daron Acemoglu & Robert Shimer, 1999. "Productivity Gains from Unemployment Insurance," NBER Working Papers 7352, National Bureau of Economic Research, Inc.
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  15. Anthony Annett, 2007. "Lessons from Successful Labor Market Reformers in Europe," IMF Policy Discussion Papers 07/1, International Monetary Fund.
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Citations

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Cited by:
  1. Carlo Di Giorgio & Massimo Giannini, 2012. "A comparison of the Beveridge curve dynamics in Italy and USA," Empirical Economics, Springer, vol. 43(3), pages 945-983, December.
  2. Michele Battisti, 2013. "Individual Wage Growth: The Role of Industry Experience," Ifo Working Paper Series Ifo Working Paper No. 152, Ifo Institute for Economic Research at the University of Munich.
  3. Mussida, C. & Picchio, M., 2011. "The Trend over Time of the GenderWage Gap in Italy," Discussion Paper 2011-093, Tilburg University, Center for Economic Research.
  4. Roberto Leombruni & Michele Mosca, 2011. "The lifetime gender gap in Italy. Do the pension system countervails labour market outcomes?," LABORatorio R. Revelli Working Papers Series 113, LABORatorio R. Revelli, Centre for Employment Studies.
  5. Fabio Clementi & Michele Giammatteo, 2012. "The labour market and the distribution of income: an empirical analysis for Italy," Working Papers 42-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jun 2012.
  6. Casadio, Paolo & Paradiso, Antonio & Rao, B. Bhaskara, 2012. "Estimates of the steady state growth rates for some European countries," Economic Modelling, Elsevier, vol. 29(4), pages 1119-1125.
  7. Rauf Gönenç & Łukasz Rawdanowicz, 2010. "Regulatory Reforms to Unlock Long–Term Growth in Turkey," OECD Economics Department Working Papers 821, OECD Publishing.
  8. Tealdi, Cristina, 2011. "Typical and atypical employment contracts: the case of Italy," MPRA Paper 39456, University Library of Munich, Germany.

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