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Flexibility Policies and Re-employment Probabilities in Italy

Author

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  • Mussida Chiara

    () (Department of Economics and Social Sciences, Università Cattolica del Sacro Cuore, Piacenza, Italy)

  • Sciulli Dario

    () (Department of Economic Studies, Università di Chieti-Pescara, Viale Pindaro 42, Pescara 65127, Italy)

Abstract

We analyze the effects of Italian labor market reforms “at the margin” on the probability of exiting from non-employment and entering permanent and temporary contracts, using WHIP data for the period 1985–2004. We find that the reforms have strengthened the duration dependence parameter, meaning a stronger labor market gap in employment opportunities between the short- and long-term non-employed. We suggest that in a flexible labor market, long-term unemployment is used by firms as a screening device to detect less productive workers. We also find evidence of greater differences in employment opportunities according to gender, and of reduced differences between regional labor markets.

Suggested Citation

  • Mussida Chiara & Sciulli Dario, 2015. "Flexibility Policies and Re-employment Probabilities in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 621-651, April.
  • Handle: RePEc:bpj:bejeap:v:15:y:2015:i:2:p:621-651:n:4
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    References listed on IDEAS

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    Cited by:

    1. Carolina Fugazza, 2018. "Anatomy of Unemployment Risk," Working papers 048, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    2. Contini, Bruno & Garcia Perez, J. Ignacio & Pusch, Toralf & Quaranta, Roberto, 2017. "New Approaches to the Study of Long-Term Non-Employment Duration in Italy, Germany and Spain," IZA Discussion Papers 11167, Institute for the Study of Labor (IZA).
    3. Contini, Bruno & Quaranta, Roberto, 2017. "Explaining Non-Employment Magnitude and Duration: The Case of Italy," IZA Discussion Papers 10728, Institute for the Study of Labor (IZA).
    4. Chiara Mussida & Dario Sciulli, 2016. "The trend over time of labour market opportunities for young people in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 291-321, August.

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