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Workforce disposal, long-term unemployment and out-of-labor force in Italy: new data for economic policy

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  • Bruno Contini
  • Elisa Grand

Abstract

A surprisingly vast number of Italian workers who begin a regular working career,are dismissed after few years and remain unemployed without ever finding a new job. Inthis paper we explore the main characteristics of this process of forced expulsion, denominated «workforce disposal».A related issue is the large and increasing number of people who report to be out-ofthe-labor force, but willing to work, way above that of France, Germany, UK and Spain. Weargue that these people, many of whom are among the «disposed», ought to be counted aslong-term unemployed. If such were the case, Italy's unemployment rate would reach 15%.Finally, workers hired with permanent contracts (the insiders) are not immune from disposal:the degree of protection offered by open-end contracts is much lower than commonsense (and knowledge) lead many to believe.

Suggested Citation

  • Bruno Contini & Elisa Grand, 2012. "Workforce disposal, long-term unemployment and out-of-labor force in Italy: new data for economic policy," Politica economica, Società editrice il Mulino, issue 2, pages 135-156.
    • Handle: RePEc:mul:je8794:doi:10.1429/38638:y:2012:i:2:p:135-156
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    1. Roberto Leombruni & Adriano Paggiaro & Ugo Trivellato, 2012. "Per un pugno di euro. Storie di ordinaria disoccupazione," LABORatorio R. Revelli Working Papers Series 120, LABORatorio R. Revelli, Centre for Employment Studies.
    2. Erich Battistin & Enrico Rettore & Ugo Trivellato, 2007. "Choosing between alternative classification criteria to measure the labour force state," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(1), pages 5-27, January.
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    4. Erich Battistin & Enrico Rettore & Ugo Trivellato, 2005. "Choosing among alternative classification criteria to measure the labour force state," IFS Working Papers W05/18, Institute for Fiscal Studies.
    5. Roberto Leombruni & Roberto Quaranta, 2011. "La codifica di settore in WHIP. Problemi correnti e studio di un algoritmo di ricostruzione della codifica Ateco 2002," LABORatorio R. Revelli Whip Technical Reports 02, LABORatorio R. Revelli, Centre for Employment Studies.
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