IDEAS home Printed from https://ideas.repec.org/a/spr/epolit/v34y2017i2d10.1007_s40888-017-0058-2.html
   My bibliography  Save this article

Labour market reforms in Italy: evaluating the effects of the Jobs Act

Author

Listed:
  • Valeria Cirillo

    () (Scuola Superiore Sant’Anna)

  • Marta Fana

    (Institut d’Etudes Politiques de Paris)

  • Dario Guarascio

    (Scuola Superiore Sant’Anna)

Abstract

This article analyses the “Jobs Act”—the last structural reform implemented in Italy—framing it within the labour market reform process starting in 1997. Taking advantage of different data sources (administrative and labour force data), the investigation provides the following results. First, monetary incentives seem to play a key role in explaining the dynamics of new (or transformed) contracts. Second, new open-ended contracts are mostly driven by transformation. Third, a relevant share of new open-ended positions is characterized by part-time contracts. Fourth, the increase in employment is concentrated among older workforce (over 50 years old). Finally, new permanent jobs increase in low-skilled and low-tech service sectors, while the opposite occurs in manufacturing (particularly in high-tech industries).

Suggested Citation

  • Valeria Cirillo & Marta Fana & Dario Guarascio, 2017. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 211-232, August.
  • Handle: RePEc:spr:epolit:v:34:y:2017:i:2:d:10.1007_s40888-017-0058-2
    DOI: 10.1007/s40888-017-0058-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40888-017-0058-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lorenzo Cappellari & Carlo Dell’Aringa & Marco Leonardi, 2012. "Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms," Economic Journal, Royal Economic Society, vol. 122(562), pages 188-215, August.
    2. Valeria Cirillo & Mario Pianta & Leopoldo Nascia, 2014. "The Shaping of Skills:Wages, Education, Innovation," Working Papers 1406, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2014.
    3. Alfred Kleinknecht & Flore N. van Schaik & Haibo Zhou, 2014. "Is flexible labour good for innovation? Evidence from firm-level data," Cambridge Journal of Economics, Oxford University Press, vol. 38(5), pages 1207-1219.
    4. Matteo Lucchese & Mario Pianta, 2012. "Innovation and Employment in Economic Cycles," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 341-359, June.
    5. Holmlund, Bertil, 1998. " Unemployment Insurance in Theory and Practice," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 113-141, March.
    6. Scarpetta, Stefano & Tressel, Thierry, 2004. "Boosting productivity via innovation and adoption of new technologies : any role for labor market institutions?," Policy Research Working Paper Series 3273, The World Bank.
    7. Bentolila, S. & Saint-Paul, G., 1995. "A model of labour demand with linear adjustment costs," Labour Economics, Elsevier, vol. 2(1), pages 105-105, March.
    8. André Sapir, 2005. "Un modello obsoleto? Crescita e specializzone dell'economia italiana," ULB Institutional Repository 2013/8122, ULB -- Universite Libre de Bruxelles.
    9. Neil Foster-McGregor & Mario Holzner & Michael Landesmann & Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2013. "A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy," wiiw Research Reports 391, The Vienna Institute for International Economic Studies, wiiw.
    10. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages 1-33, March.
    11. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
    12. Mariana Mazzucato & Mario Cimoli & Giovanni Dosi & Joseph Stiglitz & Michael Landesmann & Mario Pianta & Rainer Walz & Tim Page, 2015. "Which Industrial Policy Does Europe Need?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 50(3), pages 120-155, May.
    13. Marco Malgarini & Massimo Mancini & Lia Pacelli, 2013. "Temporary hires and innovative investments," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2361-2370, June.
    14. Francesco Bogliacino & Mario Pianta, 2016. "The Pavitt Taxonomy, revisited: patterns of innovation in manufacturing and services," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 153-180, August.
    15. Stephen Nickell & Luca Nunziata & Wolfgang Ochel, 2005. "Unemployment in the OECD Since the 1960s. What Do We Know?," Economic Journal, Royal Economic Society, vol. 115(500), pages 1-27, January.
    16. Gilles Saint-Paul, 2004. "Why are European Countries Diverging in their Unemployment Experience?," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 49-68, Fall.
    17. Paolo Pini, 2012. "La non-riforma del mercato del lavoro italiano," Working Papers 201207, University of Ferrara, Department of Economics.
    18. Addessi, William, 2014. "The productivity effect of permanent and temporary labor contracts in the Italian manufacturing sector," Economic Modelling, Elsevier, vol. 36(C), pages 666-672.
    19. Annamaria Simonazzi & Andrea Ginzburg & Gianluigi Nocella, 2013. "Economic relations between Germany and southern Europe," Cambridge Journal of Economics, Oxford University Press, vol. 37(3), pages 653-675.
    20. Valeria Cirillo & Dario Guarascio, 2015. "Jobs and Competitiveness in a Polarised Europe," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 50(3), pages 156-160, May.
    21. Matteo Lucchese & Leopoldo Nascia & Mario Pianta, 2016. "Industrial policy and technology in Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 233-260, September.
    22. Edward P. Lazear, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 105(3), pages 699-726.
    23. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2011. "Temporary job protection and productivity growth in EU economies," MPRA Paper 29698, University Library of Munich, Germany.
    24. Tito Boeri & Pietro Garibaldi, 2007. "Two Tier Reforms of Employment Protection: a Honeymoon Effect?," Economic Journal, Royal Economic Society, vol. 117(521), pages 357-385, June.
    25. Dean Baker & Andrew Glyn & David Howell & John Schmitt, 2002. "Labor Market Institutions and Unemployment: A Critical Assessment of the Cross-Country Evidence," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-17, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    26. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
    27. Enrico Saltari & Giuseppe Travaglini, 2008. "Il rallentamento della produttività del lavoro e la crescita dell'occupazione. Il ruolo del progresso tecnologico e della flessibilità del lavoro," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 3-38.
    28. Kleinknecht, Alfred, 1998. "Is Labour Market Flexibility Harmful to Innovation?," Cambridge Journal of Economics, Oxford University Press, vol. 22(3), pages 387-396, May.
    29. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    30. Sabina Avdagic & Colin Crouch, 2015. "Symposium Introduction: Labour Market Reforms, Employment Performance, Employment Quality, and Changing Social Risks," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 1-5, March.
    31. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    32. Valeria Cirillo & Marcella Corsi & Carlo D'Ippoliti, 2015. "Gender, class and the crisis," Working Papers CEB 15-026, ULB -- Universite Libre de Bruxelles.
    33. Robert VERGEER & Alfred KLEINKNECHT, 2014. "Do labour market reforms reduce labour productivity growth? A panel data analysis of 20 OECD countries (1960–2004)," International Labour Review, International Labour Organization, vol. 153(3), pages 365-393, September.
    34. Robert Vergeer & Alfred Kleinknecht, 2012. "Do Flexible Labor Markets Indeed Reduce Unemployment? A Robustness Check," Review of Social Economy, Taylor & Francis Journals, vol. 70(4), pages 451-467, December.
    35. Horst Siebert, 1997. "Labor Market Rigidities: At the Root of Unemployment in Europe," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 37-54, Summer.
    36. Daria Ciriaci & Daniela Palma, 2008. "The role of knowledge‐based supply specialisation for competitiveness: A spatial econometric approach," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 453-475, August.
    37. Valeria Cirillo, 2017. "Technology, employment and skills," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(8), pages 734-754, November.
    38. Federico Lucidi & Alfred Kleinknecht, 2010. "Little innovation, many jobs: An econometric analysis of the Italian labour productivity crisis," Cambridge Journal of Economics, Oxford University Press, vol. 34(3), pages 525-546.
    39. Sabina Avdagic, 2015. "Does Deregulation Work? Reassessing the Unemployment Effects of Employment Protection," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 6-26, March.
    40. Howell David R. & Baker Dean & Glyn Andrew & Schmitt John, 2007. "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence," Capitalism and Society, De Gruyter, vol. 2(1), pages 1-73, May.
    41. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323.
    42. Giulia Zacchia, 2016. "Paolo Sylos Labini: Reflections on a classical economist," PSL Quarterly Review, Economia civile, vol. 69(277), pages 199-208.
    43. Dario Guarascio & Annamaria Simonazzi, 2016. "A polarized country in a polarized Europe: an industrial policy for Italy’s renaissance," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 315-322, September.
    44. Michele Battisti & Giovanna Vallanti, 2013. "Flexible Wage Contracts, Temporary Jobs, and Firm Performance: Evidence From Italian Firms," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(3), pages 737-764, July.
    45. Davide Antonioli & Paolo Pini, 2014. "La crisi del lavoro in Europa ed in Italia. Per un cambio di rotta," Working Papers 2014053, University of Ferrara, Department of Economics.
    46. repec:eee:labchp:v:2:y:1986:i:c:p:1183-1217 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Labour market reforms; Employment; Italian economy; Job creation;

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:epolit:v:34:y:2017:i:2:d:10.1007_s40888-017-0058-2. 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: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.