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L'indice OECD di rigidità nel mercato del lavoro: una nota


  • Maurizio Del Conte
  • Carlo Devillanova
  • Silvia Morelli


Summary: The paper analyses the method adopted by the index of employment protection systems developed in 1999 by the OECD, and discusses its reliability and shortcomings, in particular with regards to Italy. The paper highlights a series of methodological problems arising from the aggregation of the respective indicators, and casts doubt on the possibility of developing an aggregate index generated as sum of partial indexes. The paper identifies several errors and imprecision in the development of the index, in the light of an accurate reading of legal data. The greater inaccuracies regard the index of rigidity attributed to legal provisions applicable to "employment termination indemnities", "individual dismissal", "redundancy lay off" and "temporary redundancy benefits". Re-examination of legal data has led to a substantial downgrading of Italy's labour market rigidity index. Yet, the most significant finding is the extreme volatility of the index, according to diverse interpretations of the legal data. This observation is fraught with consequences regarding proper application of information provided by the rigidity index.

Suggested Citation

  • Maurizio Del Conte & Carlo Devillanova & Silvia Morelli, 2004. "L'indice OECD di rigidità nel mercato del lavoro: una nota," Politica economica, Società editrice il Mulino, issue 3, pages 335-356.
  • Handle: RePEc:mul:je8794:doi:10.1429/18612:y:2004:i:3:p:335-356

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    Cited by:

    1. Calcagnini, Giorgio & Ferrando, Annalisa & Giombini, Germana, 2014. "Does employment protection legislation affect firm investment? The European case," Economic Modelling, Elsevier, vol. 36(C), pages 658-665.
    2. Giuseppe Tattara & Marco Valentini, 2012. "Labour Market Segmentation, Flexibility and Precariousness in the Italian North East," AIEL Series in Labour Economics,in: Tindara Addabbo & Giovanni Solinas (ed.), Non-Standard Employment and Quality of Work. The Case of Italy, edition 1, chapter 8, pages 149-172 AIEL - Associazione Italiana Economisti del Lavoro.
    3. repec:fan:eseses:v:html10.3280/es2017-003005 is not listed on IDEAS
    4. Rettore, Enrico & Paggiaro, Adriano & Trivellato, Ugo, 2008. "The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers," IZA Discussion Papers 3633, Institute of Labor Economics (IZA).
    5. Adriano Paggiaro & Enrico Rettore & Ugo Trivellato, 2008. "The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers," CESifo Working Paper Series 2340, CESifo Group Munich.

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