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The Italian Labour Market and the Crisis

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  • Tindara Addabbo

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  • Anna Maccagnan

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Abstract

The aim of this paper is to analyse the effects of the crisis on the Italian labour market. The Italian labour market is characterized by deep gender differences and regional variability. The data show that the crisis lead to an increase in the gap of female employment rates and womens inactivity rates with respect to Europe. The North of Italy experienced a higher increase in unemployment than the South, where many people withdrew from the labour market because of poor employment prospects. Moreover, in Italy, the increase in unemployment has been mitigated by the increase in the number of workers having access to the wage supplementation fund who are not computed within the unemployed. However, the heterogeneity in the system of unemployment benefits increased inequalities amongst the unemployed. Using a micro simulation techniques, we estimate the effect of the crisis on income distribution and poverty and find that at the national level, the population showed a reduction in equivalised household income by about 1 percent. The limited impact on household's equivalent income can be connected to the relatively high share of unemployed who are young with relatively low income and sustained by other members of the household.

Suggested Citation

  • Tindara Addabbo & Anna Maccagnan, 2011. "The Italian Labour Market and the Crisis," Center for the Analysis of Public Policies (CAPP) 0086, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
  • Handle: RePEc:mod:cappmo:0086
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    References listed on IDEAS

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    1. Michele Bruni, 2011. "China’s New Demographic Challenge: From Unlimited Supply of Labour to Structural Lack of Labour Supply. Labour market and demographic scenarios: 2008-2048," Department of Economics 0643, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
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    4. Tindara Addabbo & Antonella Caiumi & Anna Maccagnan, 2011. "Allocation of Time within Italian Couples: Exploring the Role of Institutional Factors and their Effects on Household?s Wellbeing," Department of Economics 0646, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    5. Jérôme De Henau & Danièle Meulders & Sile Padraigin O'Dorchai, 2010. "Maybe baby: comparing mothers' employment and child policies in the EU-15," ULB Institutional Repository 2013/13478, ULB -- Universite Libre de Bruxelles.
    6. Stephen R. G. Jones & W. Craig Riddell, 2006. "Unemployment and Nonemployment: Heterogeneities in Labor Market States," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 314-323, May.
    7. Jerome De Henau & Daniele Meulders & Sile O'Dorchai, 2010. "Maybe Baby: Comparing Partnered Women's Employment and Child Policies in the EU-15," Feminist Economics, Taylor & Francis Journals, vol. 16(1), pages 43-77.
    8. Bruno Anastasia & Massimo Mancini & Ugo Trivellato, 2009. "(Il sostegno al reddito dei disoccupati: note sullo stato dell'arte, inerzie dell'impianto categoriale e incerti orizzonti di flexicurity (A note on italian Unemployment Compensation schemes)," ISAE Working Papers 112, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
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    Cited by:

    1. Alberto Cazzola & Lucia Pasquini & Aurora Angeli, 2016. "The relationship between unemployment and fertility in Italy," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 34(1), pages 1-38.

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    More about this item

    Keywords

    labour market; poverty; economic crisis;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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