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Measuring the impact of the Italian CFL programme on the job opportunities for the youths

Author

Listed:
  • Bruno Contini

    (Dip. di Economia and LABORatorio, Torino)

  • Francesca Cornaglia

    (LABORatorio, Torino)

  • Claudio Malpede

    (R&P, Torino)

  • Enrico Rettore

    () (Dip. di Scienze Statistiche, Padova)

Abstract

The CFL programme has been introduced in 1985 to improve the youths occupational chances. It provides the employers some incentive to recruit young workers by reducing both the labour and the firing costs relative to those they would bear by recruiting older workers. Following the literature, the expected impact of the programme is to increase the eligibles chance to work during the eligibility period as well as to improve their chance to work after the eligibility period thanks to the longer work experience obtained during the eligibility period. A substitution effect might emerge since as subjects get out of eligibility employers might find convenient to replace them by younger still eligible workers. To measure the impact of the programme we exploit the variation over time and across geographical areas of the incentive to hire eligible workers induced by several reforms of the programme as well as its interaction with other incentive schemes.

Suggested Citation

  • Bruno Contini & Francesca Cornaglia & Claudio Malpede & Enrico Rettore, 2002. "Measuring the impact of the Italian CFL programme on the job opportunities for the youths," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B1-4, International Conferences on Panel Data.
  • Handle: RePEc:cpd:pd2002:b1-4
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    File URL: http://econpapers.repec.org/cpd/2002/110_Rettore.pdf
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    References listed on IDEAS

    as
    1. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
    2. Brian Bell & Richard Blundell & John Reenen, 1999. "Getting the Unemployed Back to Work: The Role of Targeted Wage Subsidies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 339-360, August.
    3. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
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    Cited by:

    1. Rita Canu & Giuseppe Tattara, 2005. "Quando le farfalle mettono le ali. Osservazioni sull'ingresso delle donne nel lavoro dipendente," Economia & lavoro, Carocci editore, issue 2, pages 1-67.
    2. repec:tur:wpaper:6 is not listed on IDEAS
    3. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2011. "Are temporary jobs a port of entry into permanent employment?: Evidence from matched employer-employee," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 879-899, November.
    4. Lia Pacelli & Silvia Pasqua & Claudia Villosio, 2007. "What does the stork bring to women's working career?," CHILD Working Papers wp16_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    5. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2009. "Are Temporary Jobs a Port of Entry into Permanent Employment? Evidence from Matched Employer-Employee Data," Working papers 06, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    6. Tattara, Giuseppe & Valentini, Marco, 2008. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? Revisiting the Italian On-the-job Training Program," MPRA Paper 10370, University Library of Munich, Germany.
    7. Grassi, Emanuele, 2009. "EPL and Job Contract Conversion Rate: The Italian CFL Case," MPRA Paper 12679, University Library of Munich, Germany.
    8. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies.
    9. Tattara, Giuseppe & Valentini, Marco, 2009. "Can employment subsidies and greater labour market flexibility increase job opportunities for youth? : revisiting the Italian on-the-job training programme," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 42(3), pages 197-212.

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    More about this item

    Keywords

    targeted wage subsidy; firing costs; substitution effect;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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