IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Long Term Youth Unemployment or Disposable Workforce?

  • Bruno Contini
  • Elisa Grand
Registered author(s):

    This paper is about very long term unemployment (a more appropriate denomination could be "out-of-official-employment") in Italy, its concentration and the process of young worker disposal, an important, yet unexplored, determinant. “Very long” is not just “long”: we are dealing with 10-20 years of absence from the official labor market of male workers who were young at the beginning of these spells, and are in their thirties, forties or early fifties when we observe them. Young workforce disposal (YWD) reflects the fact that young people are observed at the beginning of their career as dependent employees, their services are "used" for few years (sometimes only few months) as if it were a disposable commodity, after which they disappear from the official labor market. The magnitude of YWD is dramatic: out of 100 new young entries - aged 19-30 at the start of their working career -, between 79 and 86 % are still at regular work (“survive”) after 10 years, and only 78 to 83% by 2009, after 17-22 years, depending on the timing of their initial employment. Many of these people may have joined the irregular economy, but there is no way to estimate their numbers other than by a gross comparison with the estimates of hidden employment provided by ISTAT. These developments imply out-of-official-employment durations four times longer than the unemployment durations provided by official statistics and econometric estimates based on LFS-type microdata. A simple model of the medium run development of the YWD process explains the medium run impact of several demand-side factors: labor cost dynamics, flexibility, age, initial entry conditions.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.carloalberto.org/assets/working-papers/no.260.pdf
    Download Restriction: no

    Paper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 260.

    as
    in new window

    Length: 40 pages
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:cca:wpaper:260
    Contact details of provider: Postal: Via Real Collegio, 30, 10024 Moncalieri (To)
    Phone: +390116705000
    Fax: +390116476847
    Web page: http://www.carloalberto.org/Email:


    More information through EDIRC

    References listed on IDEAS
    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.:

    as in new window
    1. Stewart, M.B. & Swaffield, J.K., 1997. "Low Pay Dynamics and Transition Probabilities," The Warwick Economics Research Paper Series (TWERPS) 495, University of Warwick, Department of Economics.
    2. Gianna Claudia Giannelli & Ursula Jaenichen & Claudia Villosio, 2009. "Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy," LABORatorio R. Revelli Working Papers Series 95, LABORatorio R. Revelli, Centre for Employment Studies.
    3. Bentolila, Samuel & Cahuc, Pierre & Dolado, Juan J. & Le Barbanchon, Thomas, 2010. "Two-Tier Labor Markets in the Great Recession: France vs. Spain," IZA Discussion Papers 5340, Institute for the Study of Labor (IZA).
    4. Bruno Contini & Ambra Poggi, 2006. "Employability of Young Italian Males after a Jobless Period, 1989-1998," LABORatorio R. Revelli Working Papers Series 48, LABORatorio R. Revelli, Centre for Employment Studies.
    5. Bruno Contini & Francesca Cornaglia & Claudio Malpede & Enrico Rettore, 2002. "Measuring the Impact of the Italian CFL Programme on the Job Opportunities for the Young," LABORatorio R. Revelli Working Papers Series 11, LABORatorio R. Revelli, Centre for Employment Studies.
    6. Peichl, Andreas & Siegloch, Sebastian, 2010. "Accounting for Labor Demand Effects in Structural Labor Supply Models," IZA Discussion Papers 5350, Institute for the Study of Labor (IZA).
    7. Battistin, Erich & Rettore, Enrico, 2008. "Ineligibles and eligible non-participants as a double comparison group in regression-discontinuity designs," Journal of Econometrics, Elsevier, vol. 142(2), pages 715-730, February.
    8. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:cca:wpaper:260. 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: (Giovanni Bert)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.