Employment protection and regional worker flows in Italy
AbstractIn this paper we point out that the theoretical predictions concern-ing Employment Protection Legislation (EPL) are not fully confirmed by empirical evidence in Italy, a strict EPL country in the nine-ties, according to OECD indexes. In particular, worker and job flow rates are remarkably high, also in comparison with the other Euro-pean countries. Furthermore, the differences in regional worker flow rates -computed on both the social security database and the LFS- are relevant, no matter which measure of worker flows is considered. While EPL is the same across regions, the highest worker flow rates are observed in the South, an area generally recognised as the least dynamic of the country, followed by the Northeast, the Centre and the Northwest. For possible alternative explanations of regional differences investigation focuses on economic structural composi-tion, the black labour market, non-standard contracts, the public sector and self-employment incidence, labour productivity and firm seniority. Using Logit estimates we find that none of these factors can fully explain these differences. Moreover, the predicted nega-tive relation between worker flows and unemployment duration does not seem to hold in the case of Italy.
Download InfoIf 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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 1690.
Date of creation: Oct 2006
Date of revision:
Worker Turnover and Reallocation; Employment Protection; Regional Economics; Italy;
Other versions of this item:
- Naticchioni Paolo & Rustichelli Emiliano & Scialà Antonio, 2006. "Employment Protection and Regional Worker Flows in Italy," Economia politica, Società editrice il Mulino, Società editrice il Mulino, issue 3, pages 453-474.
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-02-10 (All new papers)
- NEP-EEC-2007-02-10 (European Economics)
- NEP-GEO-2007-02-10 (Economic Geography)
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.:
- Pietro Garibaldi, 2004.
"Do Larger Severance Payments Increase Individual Job Duration?,"
2004 Meeting Papers, Society for Economic Dynamics
445b, Society for Economic Dynamics.
- Garibaldi, Pietro & Pacelli, Lia, 2008. "Do larger severance payments increase individual job duration?," Labour Economics, Elsevier, Elsevier, vol. 15(2), pages 215-245, April.
- Pietro Garibaldi & Lia Pacelli, 2007. "Do Larger Severance Payments Increase Individual Job Duration?," Carlo Alberto Notebooks, Collegio Carlo Alberto 39, Collegio Carlo Alberto.
- Garibaldi, Pietro & Pacelli, Lia, 2004. "Do Larger Severance Payments Increase Individual Job Duration?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4607, C.E.P.R. Discussion Papers.
- Giuseppe Bertola, 2004.
"A Pure Theory of Job Security and Labour Income Risk,"
Review of Economic Studies, Wiley Blackwell,
Wiley Blackwell, vol. 71(1), pages 43-61, 01.
- Giuseppe Bertola, 2004. "A Pure Theory of Job Security and Labour Income Risk," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 43-61.
- Bertola, Giuseppe, 2002. "A Pure Theory of Job Security and Labour Income Risk," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3430, C.E.P.R. Discussion Papers.
- Paolo Naticchioni & Emiliano Rustichelli & Antonio Scialà, 2003. "Employment protection and regional worker flows in Italy: an assessment of the theoretical predictions," Working Papers - Dipartimento di Economia, Dipartimento di Economia, Sapienza University of Rome 1-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2003.
- Pierre Cahuc & AndrÃ© Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 026203316x, December.
- Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 57(3), pages 381-402, July.
- Olivier Blanchard & Justin Wolfers, 1999.
"The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence,"
NBER Working Papers
7282, National Bureau of Economic Research, Inc.
- Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 110(462), pages C1-33, March.
- Ichino, Andrea & Polo, Michele & Rettore, Enrico, 2001. "Are Judges Biased by Labour Market Conditions? The Selection of Firing Litigations for Trial in an Italian Firm," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2804, C.E.P.R. Discussion Papers.
- Boeri, Tito, 1996. "Is Job Turnover Countercyclical?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(4), pages 603-25, October.
- Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262540932, December.
- Pastore, Francesco, 2013. "Primum vivere… Industrial Change, Job Destruction and the Geographical Distribution of Unemployment," IZA Discussion Papers 7126, Institute for the Study of Labor (IZA).
- Pastore, Francesco & Tyrowicz, Joanna, 2012. "Labour Turnover and the Spatial Distribution of Unemployment: A Panel Data Analysis Using Employment Registry Data," IZA Discussion Papers 7074, Institute for the Study of Labor (IZA).
- Francesco Pastore & Joanna Tyrowicz, 2013. "Polish high unemployment and spatial labor turnover. Insights from panel data analysis using unemployment registry data," Working Papers 2013-18, Faculty of Economic Sciences, University of Warsaw.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.