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Revisiting the Effects of Enhanced Flexibility on the Italian Labour Market

Author

Listed:
  • d'Agostino, Giorgio
  • Pieroni, Luca
  • Scarlato, Margherita

Abstract

In this paper, we assess the effects of the Italian labour market reforms which began in 2001 and which led to widespread deployment of temporary work contracts. Using a hitherto unexploited administrative dataset of work histories for the period 2003-2010, we estimate transition probabilities in the states of non-employment and employment and find a small positive effect on job creation, imputed to the reforms. Estimates also indicate a large increase in transitions to temporary contracts, which offset the reduction in permanent employment flows, although transition probabilities for men and women explain little heterogeneity. While we do find a substitution effect of the reforms on the transition between temporary and permanent contracts, the increased probability of being employed in temporary jobs mostly involved young people and workers in the depressed areas of the south of Italy.

Suggested Citation

  • d'Agostino, Giorgio & Pieroni, Luca & Scarlato, Margherita, 2015. "Revisiting the Effects of Enhanced Flexibility on the Italian Labour Market," MPRA Paper 63239, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:63239
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    File URL: https://mpra.ub.uni-muenchen.de/63239/1/MPRA_paper_63239.pdf
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    References listed on IDEAS

    as
    1. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
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    11. Pierre Cahuc & Olivier Charlot & Franck Malherbet, 2016. "Explaining The Spread Of Temporary Jobs And Its Impact On Labor Turnover," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57, pages 533-572, May.
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    19. repec:ags:stataj:122597 is not listed on IDEAS
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    Cited by:

    1. Andrea Albanese & Lorenzo Cappellari & Marco Leonardi, 2017. "The Effects of Youth Labor Market Reforms: Evidence from Italian Apprenticeships," CESifo Working Paper Series 6481, CESifo Group Munich.

    More about this item

    Keywords

    Labour market policy; Atypical contract; Panel data; Inverse probability of weighting estimator;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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