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Is Long-Term Unemployment Unaffected by Flexible Labour Market Legislation?

Author

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  • Chiara Mussida

    (Universita' Cattolica di Milano)

Abstract

This paper applies duration and competing risk models to individual-level data on unemployment spells from the 1993-2003 labour force surveys in Italy. We aim to assess whether labour market intervention and regulations introduced in the nineties acted in the expected direction, that is reducing the incidence of long-term unemployment. The determinants – individual and structural – of both unemployment duration and its main exits (employment and inactivity) are also discussed. At least as far as our analysis goes, we find evidence of strong negative duration dependence. This leads to increased unemployment persistence and to an enhanced incidence of long-term unemployment. The legislation of the nineties, therefore, did not contribute to decline in the bulk of long-term unemployment.

Suggested Citation

  • Chiara Mussida, 2010. "Is Long-Term Unemployment Unaffected by Flexible Labour Market Legislation?," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 118(1), pages 77-105.
    • Handle: RePEc:vep:journl:y:2010:v:118:i:1:p:77-105
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    Citations

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    Cited by:

    1. Pasquini, Alessandra & Centra, Marco & Pellegrini, Guido, 2019. "Fighting long-term unemployment: Do we have the whole picture?," Labour Economics, Elsevier, vol. 61(C).
    2. Alessandra Pasquini & Marco Centra & Guido Pellegrini, 2018. "Long-Term Unemployed hirings: Should targeted or untargeted policies be preferred?," Papers 1802.03343, arXiv.org, revised May 2018.
    3. Luca Zanin & Raffaella Calabrese, 2017. "Interaction effects of region-level GDP per capita and age on labour market transition rates in Italy," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-29, December.

    More about this item

    Keywords

    Unemployment duration; Competing risks;

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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