The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers
Liste di mobilità (LM) is an Italian labour market programme targeted to dismissed workers. It combines a ‘passive’ component granting monetary benefits to employees dismissed by firms larger than 15 employees, and an ‘active’ component providing an employment subsidy to any firm hiring workers from the LM. Eligibility duration varies with the worker’s age at dismissal. Using a new linked administrative panel data set for an Italian region, we exploit the variability of these provisions to evaluate the impact of extending the duration of eligibility on re-employment probabilities and wages over the 36 months subsequent to enrolment in the programme. The average treatment effect is identified via a Regression Discontinuity Design. We validate the design by a set of overidentification tests. For most of the sub-groups we analyse, we find that a longer eligibility period has no impact on re-employment rates. A negative impact emerges for women entitled to monetary benefits at the end of the second year of eligibility, but it disappears one year later. A major negative impact emerges for workers aged 50 or more granted the monetary benefits; it is most likely due to the fact that they can use the LM as a bridge to retirement.
|Date of creation:||Aug 2008|
|Date of revision:|
|Publication status:||published as 'The Effect of Longer Eligibility to a Labour Market Programme for Dismissed Workers' in: Labour, 2009, 23 (1), 37 - 66|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January.
- Rebecca M. Blank, 2002.
"Evaluating Welfare Reform in the United States,"
NBER Working Papers
8983, National Bureau of Economic Research, Inc.
- Fredriksson, Peter & Söderström, Martin, 2008.
"Do Unemployment Benefits Increase Unemployment? New Evidence on an Old Question,"
IZA Discussion Papers
3570, Institute for the Study of Labor (IZA).
- Fredriksson, Peter & Söderström, Martin, 2008. "Do unemployment benefits increase unemployment? New evidence on an old question," Working Paper Series 2008:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Del Conte Maurizio & Devillanova Carlo & Morelli Silvia, 2004. "L'indice OECD di rigidità nel mercato del lavoro: una nota," Politica economica, Società editrice il Mulino, issue 3, pages 335-356.
- Fabiano Schivardi & Roberto Torrini, 2003. "Firm Size Distribution and EPL in Italy," William Davidson Institute Working Papers Series 2003-613, William Davidson Institute at the University of Michigan.
- Adriano Paggiaro & Ugo Trivellato, 2002. "Assessing the Effects of the 'Mobility Lists' Programme by Flexible Duration Models," LABOUR, CEIS, vol. 16(2), pages 235-266, 06.
- Brunello, Giorgio & Miniaci, Raffaele, 1997. "Benefit Transfers in Italy: An Empirical Study of Mobility Lists in the Milan Area," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(3), pages 329-47, August.
- Mortensen, Dale T & Pissarides, Christopher, 1999.
"New Developments in Models of Search in the Labour Market,"
CEPR Discussion Papers
2053, C.E.P.R. Discussion Papers.
- Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627 Elsevier.
- Snower, Dennis J, 1994.
"Converting Unemployment Benefits into Employment Subsidies,"
American Economic Review,
American Economic Association, vol. 84(2), pages 65-70, May.
- Snower, Dennis J., 1994. "Converting Unemployment Benefits into Employment Subsidies," CEPR Discussion Papers 930, C.E.P.R. Discussion Papers.
- Imbens, Guido W. & Lemieux, Thomas, 2008.
"Regression discontinuity designs: A guide to practice,"
Journal of Econometrics,
Elsevier, vol. 142(2), pages 615-635, February.
- Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers 0337, National Bureau of Economic Research, Inc.
- Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Working Papers 13039, National Bureau of Economic Research, Inc.
- Caruso Enza & Pisauro Giuseppe, 2005. "Licenziamenti definitivi o temporanei? Durata della disoccupazione nelle liste di mobilità tra nuovi e vecchi datori di lavoro," Politica economica, Società editrice il Mulino, issue 3, pages 361-400.
- Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, vol. 142(2), pages 675-697, February.
- Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
- Bruce D. Meyer, 1988.
"Unemployment Insurance And Unemployment Spells,"
NBER Working Papers
2546, National Bureau of Economic Research, Inc.
- Fabiano Schivardi & Roberto Torrini, 2004. "Firm size distribution and employment protection legislation in Italy," Temi di discussione (Economic working papers) 504, Bank of Italy, Economic Research and International Relations Area.
- Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
- Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3633. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.