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Estimating Workforce Disposal in the Italian Labour Market

Author

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  • Contini, Bruno

    () (LABORatorio R. Revelli)

  • Grand, Elisa

    () (LABORatorio R. Revelli)

Abstract

Italy's labour market suffers from a serious pathology, in addition to the increasing precariousness of the young workforce common to all EU member countries: flows from regular employment to non-employment are very often dead-ends. A vast number of young individuals who lose their job only a few months or years after their first hire enter the ranks of the long-term unemployed or leave the workforce altogether, never to regain regular employment even after as long as twenty years. Many join the ranks of the irregular economy, many drop out of the labour force. "Workforce disposal" refers to the process generating this pathology. Prolonged stagnation of the Italian economy is an important long run macroeconomic determinant of workforce disposal. But there are several factors that have an important impact in the short and medium run. In this study we set out to investigate such determinants. Workforce disposal is present also in Spain, though to a lesser extent than Italy. Informed media report that similar developments are taking place also in countries of Eastern Europe, although no scientific evidence is yet available. And it would be surprising if the economies of Portugal and Greece were immune from the disease. Our exploration of the Italian case makes use of the WHIP longitudinal database originating from Social Security records.

Suggested Citation

  • Contini, Bruno & Grand, Elisa, 2014. "Estimating Workforce Disposal in the Italian Labour Market," IZA Policy Papers 79, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izapps:pp79
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    References listed on IDEAS

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    1. Samuel Bentolila & Juan J. Dolado & Pierre Cahuc & Thomas Le Barbanchon, 2010. "Two-Tier Labor Markets in the Great Recession: France Vs. Spain," Working Papers wp2010_1009, CEMFI.
    2. Peichl, Andreas & Siegloch, Sebastian, 2012. "Accounting for labor demand effects in structural labor supply models," Labour Economics, Elsevier, vol. 19(1), pages 129-138.
    3. 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.
    4. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    5. Contini, Bruno & Revelli, Riccardo, 1997. "Gross flows vs. net flows in the labor market: What is there to be learned?," Labour Economics, Elsevier, vol. 4(3), pages 245-263, September.
    6. Contini, Bruno & Villosio, Claudia, 2007. "Worker Mobility, Displacement, Redeployment and Wage Dynamics in Italy," IZA Discussion Papers 2622, Institute for the Study of Labor (IZA).
    7. Guerino Ardizzi & Carmelo Petraglia & Massimiliano Piacenza & Gilberto Turati, 2014. "Measuring the Underground Economy with the Currency Demand Approach: A Reinterpretation of the Methodology, With an Application to Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 747-772, December.
    8. Bruno Contini & Ambra Poggi, 2012. "Employability of Young Italian Men after a Jobless Period, 1989–98," LABOUR, CEIS, vol. 26(1), pages 66-89, March.
    9. Gianna Giannelli & Ursula Jaenichen & Claudia Villosio, 2012. "Have Labor Market Reforms at the Turn of the Millennium Changed the Job and Employment Durations of new Entrants?," Journal of Labor Research, Springer, vol. 33(2), pages 143-172, June.
    10. Bruno Contini & Francesca Cornaglia & Claudio Malpede & Enrico Rettore, 2002. "Measuring the Impact of the Italian CFL Programme on the Job Opportunities for the Young," LABORatorio R. Revelli Working Papers Series 11, LABORatorio R. Revelli, Centre for Employment Studies.
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    Cited by:

    1. B. Contini & J. Ignacio Garcia Perez & T. Pusch & R. Quaranta, 2017. "New Approaches to the Study of Long Term Non-Employment Duration in Italy, Germany and Spain," Working Papers 2017-14, FEDEA.
    2. Contini, Bruno & Quaranta, Roberto, 2017. "Explaining Non-Employment Magnitude and Duration: The Case of Italy," IZA Discussion Papers 10728, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    unemployment; youth employment and participation; mobility; workforce;

    JEL classification:

    • J - Labor and Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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