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Have Labour Market Reforms at the Turn of the Millennium Changed Job Durations of the New Entrants? A Comparative Study for Germany and Italy

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Author Info

  • Giannelli, Gianna Claudia

    ()
    (University of Florence)

  • Jaenichen, Ursula

    ()
    (Institute for Employment Research (IAB), Nuremberg)

  • Villosio, Claudia

    ()
    (Collegio Carlo Alberto)

Abstract

According 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, taken as representative examples of continuous and isolated reforms, respectively. 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 Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4591.

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Length: 40 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4591

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Related research

Keywords: employment duration; mixed proportional hazard; work career; tenure; precarious jobs; labour market reforms;

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  1. Boockmann, Bernhard & Hagen, Tobias, 2005. "Fixed-term Contracts as Sorting Mechanisms: Evidence From Job Durations in West Germany," ZEW Discussion Papers 05-85, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000. "Temporary Jobs: Stepping Stones or Dead Ends?," IZA Discussion Papers 205, Institute for the Study of Labor (IZA).
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Cited by:
  1. Bruno Contini & Elisa Grand, 2010. "Long term youth unemployment or disposable workforce?," LABORatorio R. Revelli Working Papers Series 101, LABORatorio R. Revelli, Centre for Employment Studies.
  2. Tealdi, Cristina, 2011. "How do employment contract reforms affect welfare? Theory and evidence," MPRA Paper 33573, University Library of Munich, Germany.
  3. Bruno Contini & Elisa Grand, 2012. "Long Term Youth Unemployment or Disposable Workforce?," Carlo Alberto Notebooks 260, Collegio Carlo Alberto.
  4. Tealdi, Cristina, 2011. "Typical and atypical employment contracts: the case of Italy," MPRA Paper 39456, University Library of Munich, Germany.

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