Evaluating the Unintended Effects on Workers and Firms of a program for Displaced Workers
The Italian programme "Mobilità" has two objectives: first, it provides time-limited income support to some categories of workers collectively dismissed due to plant closing or firm restructuring; second, it attempts to increase their reemployment chances by giving incentives to employers who are willing to hire them. However, these benefits can distort the behaviour of both employers and workers: the former can dismiss and then rehire the same workers to receive the incentives, while workers who are eligible for income support could refuse some job offers, thus prolonging their unemployment spell. We investigate the presence of these effects by analyzing administrative data on workers dismissed in the province of Turin between 1997 and 2000. We find a non negligible number of firms who fraudulently dismiss their workers to rehire them soon afterwards under a different firm denomination; and we find a strong negative effect of the receipt of income support on the probability of reemployment. Such negative effect increases strongly with the age of the worker, and that is due to the design of the programme, which increases the maximum eligibility duration with the age of the worker (up to a pre-retirement status for most of the over 50s). On the other hand, extending the eligibility duration seems to have no effect on workers who are not eligible for income support.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:mul:je8794:doi:10.1429/25711:y:2007:i:3:p:259-288. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.