Advanced Search
MyIDEAS: Login to save this paper or follow this series

The effects of unemployment benefits in Italy: evidence from an institutional change

Contents:

Author Info

  • Alfonso Rosolia
  • Paolo Sestito

Abstract

We document the effects of a change in the replacement rate and potential duration of theItalian Ordinary unemployment benefits scheme on the job search process. As of january 2001, benefits were extended from 6 to 9 months selectively for workers aged 50 or more, and the replacement rate was raised from 30 to 40 percent for all workers. We draw on social security records that cover the employment and welfare histories of a representative sample of individuals. Comparisons of eligible and non eligible workers across the relevant age and time thresholds conducted on a variety of samples and conditional on several specifications of the information set suggest that(a) the average duration of benefits’ collection increased by around one month for individuals entitled to 3 additional months of potential duration, while it did not change significantly for those only exposed to higher replacement rates;(b) the pace of reemployment is never found to be statistically different among claimants exposed to the new regime, although point estimates for those exposed to a longer duration point consistently toa2-4percentagepoints lower probability of reemployment at several horizons. Graphical evidence suggests that job-separation rates did not change with the new regime, while take-up apparently did, although the clear cyclical pattern could bias the picture. We conclude that, if any, the behavioral response induced by such institutional change, must have been economically modest. We discuss reasons why the response may have been so subdued.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.dt.tesoro.it/export/sites/sitodt/modules/documenti_it/analisi_progammazione/working_papers/WP_N._7-2012.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of the Treasury, Ministry of the Economy and of Finance in its series Working Papers with number 7.

as in new window
Length: 39
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:itt:wpaper:2012-7

Contact details of provider:
Email:
Web page: http://www.dt.tesoro.it
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Nicola Pavoni & G. L. Violante, 2007. "Optimal Welfare-to-Work Programs," Review of Economic Studies, Oxford University Press, vol. 74(1), pages 283-318.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:itt:wpaper:2012-7. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marina Sabatini).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.