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Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces

In: Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought

Author

Listed:
  • Andrea Brandolini

    (Banca d'Italia)

  • Piero Casadio

    (Banca d'Italia)

  • Piero Cipollone

    (Banca d'Italia)

  • Marco Magnani

    (Banca d'Italia)

  • Alfonso Rosolia

    (Banca d'Italia)

Abstract

The chapter analyses the broad picture emerging from the 1993 incomes policy agreement in Italy as well as other policy actions (and omissions). The agreement was successful in producing a remarkable moderation of the relative price of labour - despite the reduction of the user cost of capital driven by the fall in interest rates – and an increase in labour demand and employment. In spite of this, however, the intensified international competition made structural problems of Italian industry much more severe, with negative effects on the growth of output and exports, and eventually employment.

Suggested Citation

  • Andrea Brandolini & Piero Casadio & Piero Cipollone & Marco Magnani & Alfonso Rosolia, 2007. "Employment Growth in Italy in the 1990s: Institutional Arrangements and Market Forces," AIEL Series in Labour Economics, in: Nicola Acocella & Riccardo Leoni (ed.), Social Pacts, Employment and Growth. A Reappraisal of Ezio Tarantelli’s Thought, edition 1, chapter 4, pages 31-68, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:02-04
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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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