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Hiring Incentives and Labour Force Participation in Italy

Author

Listed:
  • Piero Cipollone

    (Bank of Italy, Research Department)

  • Corrado Di Maria

    (Tilburg University)

  • Anita Guelfi

    (Confindustria, Research Department)

Abstract

A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We investigate this relationship within a policy evaluation framework; in particular, we examine how labour supply reacted in Italy to a recent subsidy in favour of open-ended contracts. This subsidy increased labour force participation by 1.4% in 2001 and 2.1% in 2002. This increase was concentrated on males aged 35-54, with a low or at most a secondary schooling level.

Suggested Citation

  • Piero Cipollone & Corrado Di Maria & Anita Guelfi, 2004. "Hiring Incentives and Labour Force Participation in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(2), pages 161-203, November.
  • Handle: RePEc:gde:journl:gde_v63_n2_p161-203
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    Cited by:

    1. Andrea Brandolini & Piero Casadio & Piero Cipollone & Marco Magnani & Alfonso Rosolia & Roberto Torrini, 2007. "Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces," AIEL Series in Labour Economics, in: Nicola Acocella & Riccardo Leoni (ed.), Social Pacts, Employment and Growth, chapter 3, pages 31-68, Springer.
    2. Riccardo Pariboni & Walter Paternesi Meloni, 2022. "Salari, distribuzione e costo del lavoro: un'analisi aggregata, settoriale e di genere del caso italiano nel contesto europeo," Working Papers 0060, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    3. Jacopo Zotti & Rosita Pretaroli & Francesca Severini & Claudio Socci & Giancarlo Infantino, 2020. "Employment incentives and the disaggregated impact on the economy. The Italian case," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 993-1032, October.

    More about this item

    Keywords

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    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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