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The Italian Labour Market and the Crisis

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  • Tindara Addabbo

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  • Anna Maccagnan

    ()

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    Abstract

    The aim of this paper is to analyse the effects of the crisis on the Italian labour market. The Italian labour market is characterized by deep gender differences and regional variability. The data show that the crisis lead to an increase in the gap of female employment rates and womens inactivity rates with respect to Europe. The North of Italy experienced a higher increase in unemployment than the South, where many people withdrew from the labour market because of poor employment prospects. Moreover, in Italy, the increase in unemployment has been mitigated by the increase in the number of workers having access to the wage supplementation fund who are not computed within the unemployed. However, the heterogeneity in the system of unemployment benefits increased inequalities amongst the unemployed. Using a micro simulation techniques, we estimate the effect of the crisis on income distribution and poverty and find that at the national level, the population showed a reduction in equivalised household income by about 1 percent. The limited impact on household's equivalent income can be connected to the relatively high share of unemployed who are young with relatively low income and sustained by other members of the household.

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    File URL: http://www.capp.unimore.it/pubbl/cappapers/Capp_p86.pdf
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    Bibliographic Info

    Paper provided by Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica in its series Center for the Analysis of Public Policies (CAPP) with number 0086.

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    Length: pages 17
    Date of creation: Feb 2011
    Date of revision:
    Handle: RePEc:mod:cappmo:0086

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    Web page: http://www.capp.unimore.it
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    Related research

    Keywords: labour market; poverty; economic crisis;

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    1. Jerome De Henau & Daniele Meulders & Sile O'Dorchai, 2010. "Maybe Baby: Comparing Partnered Women's Employment and Child Policies in the EU-15," Feminist Economics, Taylor & Francis Journals, vol. 16(1), pages 43-77.
    2. Stephen R.G. Jones & W. Craig Riddell, 2002. "Unemployment and Non-Employment: Heterogeneities in Labour Market States," Department of Economics Working Papers 2002-05, McMaster University.
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