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The Choice of the Working Sector in Italy

Author

Listed:
  • Bardasi, E.
  • Monfardini, C.

Abstract

Using the budget of Italian Survey by Banca d'Italia we analyse the sectoral choce of the Italian workers among the private, public and self-employed options. The choice is modelled using a trivariate probit which allows one to release the IIA hypothesis, imposed by the multinomial logit model. The validity of the IIA assumption is strongly rejected and a negative correlation between the utilities of working in the private and public sectors is found. Moreover, the significance of many individual specific variables in the estimated model supports the intuition of the existence some diversity among workers choosing the different sectors.

Suggested Citation

  • Bardasi, E. & Monfardini, C., 1997. "The Choice of the Working Sector in Italy," Economics Working Papers eco97/09, European University Institute.
  • Handle: RePEc:eui:euiwps:eco97/09
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    Cited by:

    1. Brown, Sarah & Sessions, John G., 1999. "Education and employment status: a test of the strong screening hypothesis in Italy," Economics of Education Review, Elsevier, vol. 18(4), pages 397-404, October.

    More about this item

    Keywords

    ECONOMETRICS ; HUMAN CAPITAL;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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