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Employability of Young Italian Males after a Jobless Period, 1989-1998

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  • Bruno Contini
  • Ambra Poggi

Abstract

In Italy, about 28% of young males starting their first job in the private sector during 1989-1993 left their jobs in the first two years; some of them experienced job to job transitions but the majority of them experienced long jobless periods. A number of empirical studies suggest that the employability of jobless people deteriorates as their joblessness persists as consequence of human capital depreciation, demotivation and/or stigma effects. The aim of this paper is to investigate mechanisms that may produce employer stigmatization, discouragement, and human capital depreciation over the course of joblessness. Therefore, we analyze the existence and the causes of negative jobless duration dependence and the impact of a period of joblessness on wages as an indicator of the depreciation of human capital during joblessness or (to some degree) the wage effect of stigmatization. Sample selection and unobserved endogeneity issues are considered and a measure of jobless loss is suggested. Our results show the presence of a negative jobless duration dependence and a strong negative wage elasticity conted to the length of joblessness. Average jobless loss seems to be large.

Suggested Citation

  • 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.
  • Handle: RePEc:cca:wplabo:48
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    Cited by:

    1. Bruno Contini & Elisa Grand, 2010. "Long term youth unemployment or disposable workforce?," LABORatorio R. Revelli Working Papers Series 101, LABORatorio R. Revelli, Centre for Employment Studies.
    2. Contini, Bruno & Grand, Elisa, 2014. "Estimating Workforce Disposal in the Italian Labour Market," IZA Policy Papers 79, Institute for the Study of Labor (IZA).
    3. Contini, Bruno & Garcia Perez, J. Ignacio & Pusch, Toralf & Quaranta, Roberto, 2017. "New Approaches to the Study of Long-Term Non-Employment Duration in Italy, Germany and Spain," IZA Discussion Papers 11167, Institute for the Study of Labor (IZA).
    4. Mussida Chiara & Sciulli Dario, 2015. "Flexibility Policies and Re-employment Probabilities in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 621-651, April.

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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