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

  • Bruno Contini

    (Dip. di Economia and LABORatorio, Torino)

  • Francesca Cornaglia

    (LABORatorio, Torino)

  • Claudio Malpede

    (R&P, Torino)

  • Enrico Rettore


    (Dip. di Scienze Statistiche, Padova)

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.

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Paper provided by International Conferences on Panel Data in its series 10th International Conference on Panel Data, Berlin, July 5-6, 2002 with number B1-4.

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Date of creation: Mar 2002
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Handle: RePEc:cpd:pd2002:b1-4
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  1. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
  2. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
  3. Brian Bell & Richard Blundell & John Van Reenen, 1999. "Getting the unemployed back to work: the role of targeted wage subsidies," IFS Working Papers W99/12, Institute for Fiscal Studies.
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