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Labour-Market Reforms and the Beveridge Curve: Some Macro Evidence for Italy

  • Sergio Destefanis
  • Raquel Fonseca

A matching theory approach is utilised to assess the impact on the Italian labour market of the 1997 legge Treu, which considerably eased the regulation of temporary work and favoured its growth in Italy. The authors re-parameterise the matching function as a Beveridge Curve and estimate it as a production frontier, finding huge differences in matching efficiency between the South and the rest of the country. The legge Treu appears to have improved matching efficiency in the North of the country, particularly for skilled workers, but also to have strengthened competition among skilled and unskilled workers, especially in the South.

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Paper provided by RAND Corporation Publications Department in its series Working Papers with number 436.

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Length: 33 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:ran:wpaper:436
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  17. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
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  19. Fahr, René & Sunde, Uwe, 2002. "Estimations of Occupational and Regional Matching Efficiencies Using Stochastic Production Frontier Models," IZA Discussion Papers 552, Institute for the Study of Labor (IZA).
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  24. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
  25. Ibourk, Aomar & Maillard, Bénédicte & Perelman, Sergio & Sneessens, Henri R., 2001. "The Matching Efficiency of Regional Labour Markets: A Stochastic Production Frontier Estimation, France 1990-1995," IZA Discussion Papers 339, Institute for the Study of Labor (IZA).
  26. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
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