tax credit policy and firms' behaviour: the case of subsidy to open-end labour contract in italy
In the past decade fixed-term contracts have been widely used to ease the regulatory burden in several European labour markets. Because there is some concern that they might be a dead-end for many worker, policy makers have intervened to increase transitions from fixed-term to open-end contracts. The effects of these interventions have not been thoroughly studied. This paper is a contribution to fill the gap. We look at a recent Italian policy designed to foster hiring with open-end rather than with fixed-term contracts. Our results seem to indicate that most of the financial support was wasted because of the large dead-weight loss associated to the program. Firms used the subsidy primarily to hire under open-end contracts workers who would have been hired under such contracts regardless of the subsidy, albeit after a short transition into temporary employment
|Date of creation:||Mar 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Via Nazionale, 91 - 00184 Roma|
Web page: http://www.bancaditalia.it
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maia Güell, 2002.
"Fixed-term contracts and the duration distribution of unemployment,"
Economics Working Papers
602, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2003.
- Maia Güell, 2003. "Fixed-term Contracts and the Duration Distribution of Unemployment," Working Papers 105, Barcelona Graduate School of Economics.
- Güell, Maia, 2003. "Fixed-Term Contracts and the Duration Distribution of Unemployment," IZA Discussion Papers 791, Institute for the Study of Labor (IZA).
- Maia Güell, 2001. "Fixed-Term Contracts and the Duration Distribution of Unemployment," CEP Discussion Papers dp0505, Centre for Economic Performance, LSE.
- Maia Guell, 2001. "Fixed-term contracts and the duration distribution of unemployment," LSE Research Online Documents on Economics 20122, London School of Economics and Political Science, LSE Library.
- Güell, Maia, 2002. "Fixed-Term Contracts and the Duration Distribution of Unemployment," CEPR Discussion Papers 3264, C.E.P.R. Discussion Papers.
- B Contini & l Pacelli & C Villosio, 1999.
"Short Employment Spells in Italy, Germany and the UK: Testing the Port of Entry Hypothesis,"
CEP Discussion Papers
dp0426, Centre for Economic Performance, LSE.
- Bruno Contini & Lia Pacelli & Claudia Villosio, 1999. "Short employment spells in Italy, Germany and the UK: testing the 'port of entry' hypothesis," LSE Research Online Documents on Economics 20221, London School of Economics and Political Science, LSE Library.
- Bruno Contini & Lia Pacelli & Claudia Villosio, 2000. "Short Employment Spells in Italy, Germany and the UK: Testing the Port-of-Entry Hypothesis," LABORatorio R. Revelli Working Papers Series 14, LABORatorio R. Revelli, Centre for Employment Studies.
- Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000.
"Temporary Jobs: Stepping Stones or Dead Ends?,"
IZA Discussion Papers
205, Institute for the Study of Labor (IZA).
- Olivier Blanchard & Augustin Landier, 2001. "The Perverse Effects of Partial Labor Market Reform: Fixed Duration Contracts in France," NBER Working Papers 8219, National Bureau of Economic Research, Inc.
- Andrea Brandolini & Piero Cipollone & Paolo Sestito, 2001. "Earnings Dispersion, Low Pay and Household Poverty in Italy, 1977-1998," Temi di discussione (Economic working papers) 427, Bank of Italy, Economic Research and International Relations Area.
- Catalina Amuedo-Dorantes, 2000. "Work Transitions into and Out of Involuntary Temporary Employment in a Segmented Market: Evidence from Spain," ILR Review, Cornell University, ILR School, vol. 53(2), pages 309-325, January.
When requesting a correction, please mention this item's handle: RePEc:bdi:wptemi:td_471_03. 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: ()
If references are entirely missing, you can add them using this form.