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Does Rising Unemployment Lead To Policies Of Labour Flexibility? The Italian Case (1990 – 2013)

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  • Guglielmo Forges Davanzati
  • Lucia Mongelli

Abstract

This paper deals with the relation between labour market deregulation and the path of employment in Italy. A preliminary reconstruction of the theoretical debate is provided, based on the different views advocated by Neoclassical and post-Keynesian scholars. The second part of this paper focuses on empirical evidence, concluding that the increase in labour flexibility negatively affected the employment rate in the 2000s. Moreover, it is argued that as unemployment increases, workers’ bargaining power decreases not only in the labour market but also in the political arena,allowing the Government to implement further policies of labour flexibility. The evidence confirms this conjecture.

Suggested Citation

  • Guglielmo Forges Davanzati & Lucia Mongelli, 2017. "Does Rising Unemployment Lead To Policies Of Labour Flexibility? The Italian Case (1990 – 2013)," Working Papers 0026, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    • Handle: RePEc:ast:wpaper:0026
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    References listed on IDEAS

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    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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