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Italy: From Economic Decline to the Current crisis

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  • Pasquale Tridico

Abstract

The objective of this paper is to show that the current global economic crisis, in which also Italy fell in 2008, represents just the last step of a long declining path for the Italian economy which began in the nineties, or to be more precise in 1992and 1993. In particular, I argue the reasons which explain the long Italian decline, and partly also the deeper recession today, as well as the lack of recovery from the current crisis, can be found in the past reforms of the labour market. In particular the labour flexibility introduced in the last 15 years, which had, along with other policies introduced in parallel, cumulative negative consequences on the inequality, on the consumption, on the aggregate demand, on the labour productivity and on the GDP dynamics.

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Paper provided by Department of Economics - University Roma Tre in its series Departmental Working Papers of Economics - University 'Roma Tre' with number 0173.

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Length: 37
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:rtr:wpaper:0173

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Keywords: Labour market; labour policies; income distribution; productivity; wage; crisis;

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  1. Torrini Roberto, 2005. "Quota dei profitti e redditività del capitale in Italia: un tentativo di interpretazione," Politica economica, Società editrice il Mulino, issue 1, pages 7-42.
  2. Olivier Blanchard & Francesco Giavazzi, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," NBER Working Papers 8120, National Bureau of Economic Research, Inc.
  3. Raffaele Miniaci & Guglielmo Weber, 1996. "The Italian recession of 1993: Aggregate implications of microeconomic evidence," IFS Working Papers W96/09, Institute for Fiscal Studies.
  4. Levrero Enrico Sergio & Stirati Antonella, 2005. "Distribuzione del reddito e prezzi relativi in Italia 1970-2002," Politica economica, Società editrice il Mulino, issue 3, pages 401-434.
  5. Lilla Marco, 2005. "Disuguaglianze salariali in Italia: nuove evidenze dai microdati SHIW," Politica economica, Società editrice il Mulino, issue 1, pages 71-102.
  6. Pasquale Tridico, 2012. "The impact of the economic crisis on the EU labour market: a comparative perspective," Departmental Working Papers of Economics - University 'Roma Tre' 0153, Department of Economics - University Roma Tre.
  7. Jean-Paul Fitoussi & Francesco Saraceno, 2010. "Inequality and Macroeconomic Performance," Documents de Travail de l'OFCE 2010-13, Observatoire Francais des Conjonctures Economiques (OFCE).
  8. Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
  9. Pasquale Tridico, 2007. "Flessibilità e istituzioni nel mercato del lavoro: dagli economisti classici agli economisti istituzionalisti," Working Papers 0706, CREI Università degli Studi Roma Tre, revised 2007.
  10. Robert Boyer, 2009. "Come conciliare la solidarietà sociale e l’efficienza economica nell’era della globalizzazione: un punto di vista "regolazionista"," ARGOMENTI, FrancoAngeli Editore, vol. 2009(25), pages 5-29.
  11. Alfred Kleinknecht & C.W.M. Naastepad, 2005. "The Netherlands: Failure of a neo-classical policy agenda," European Planning Studies, Taylor & Francis Journals, vol. 13(8), pages 1193-1203, July.
  12. Leonello Tronti & Francesca Ceccato, 2005. "Il lavoro atipico in Italia: caratteristiche, diffusione e dinamica," ARGOMENTI, FrancoAngeli Editore, vol. 2005(14).
  13. Salop, Steven C, 1979. "A Model of the Natural Rate of Unemployment," American Economic Review, American Economic Association, vol. 69(1), pages 117-25, March.
  14. Sebastiano Fadda, 2005. "Per una integrazione tra politiche del lavoro e politiche di sviluppo," ARGOMENTI, FrancoAngeli Editore, vol. 2005(14).
  15. Leonello TRONTI, 2005. "Protocollo di Luglio e crescita economica: l’occasione perduta," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(2), pages 345-370.
  16. Aldo Barba & Massimo Pivetti, 2009. "Rising household debt: Its causes and macroeconomic implications--a long-period analysis," Cambridge Journal of Economics, Oxford University Press, vol. 33(1), pages 113-137, January.
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