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Italy: From Economic Decline to the Current crisis

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  • Pasquale Tridico

Abstract

The objective of this paper is to show that the current global economic crisis, in which also Italy fell in 2008, represents just the last step of a long declining path for the Italian economy which began in the nineties, or to be more precise in 1992and 1993. In particular, I argue the reasons which explain the long Italian decline, and partly also the deeper recession today, as well as the lack of recovery from the current crisis, can be found in the past reforms of the labour market. In particular the labour flexibility introduced in the last 15 years, which had, along with other policies introduced in parallel, cumulative negative consequences on the inequality, on the consumption, on the aggregate demand, on the labour productivity and on the GDP dynamics.

Suggested Citation

  • Pasquale Tridico, 2013. "Italy: From Economic Decline to the Current crisis," Departmental Working Papers of Economics - University 'Roma Tre' 0173, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0173
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    References listed on IDEAS

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    1. Jean-Paul Fitoussi & Francesco Saraceno, 2010. "Inequality and macroeconomic performance," Working Papers hal-01069429, HAL.
    2. Pasquale Tridico, 2012. "The impact of the economic crisis on the EU labour market: a comparative perspective," Departmental Working Papers of Economics - University 'Roma Tre' 0153, Department of Economics - University Roma Tre.
    3. Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 879-907.
    4. Leonello Tronti & Francesca Ceccato, 2005. "Il lavoro atipico in Italia: caratteristiche, diffusione e dinamica," ARGOMENTI, FrancoAngeli Editore, vol. 2005(14).
    5. Salop, Steven C, 1979. "A Model of the Natural Rate of Unemployment," American Economic Review, American Economic Association, vol. 69(1), pages 117-125, March.
    6. repec:mes:challe:v:33:y:1990:i:4:p:57-59 is not listed on IDEAS
    7. Robert Boyer, 2009. "Come conciliare la solidarietà sociale e l’efficienza economica nell’era della globalizzazione: un punto di vista "regolazionista"," ARGOMENTI, FrancoAngeli Editore, vol. 2009(25), pages 5-29.
    8. Alfred Kleinknecht & C.W.M. Naastepad, 2005. "The Netherlands: Failure of a neo-classical policy agenda," European Planning Studies, Taylor & Francis Journals, vol. 13(8), pages 1193-1203, July.
    9. Sebastiano Fadda, 2005. "Per una integrazione tra politiche del lavoro e politiche di sviluppo," ARGOMENTI, FrancoAngeli Editore, vol. 2005(14).
    10. Roberto Torrini, 2005. "Quota dei profitti e redditività del capitale in Italia: un tentativo di interpretazione," Politica economica, Società editrice il Mulino, issue 1, pages 7-42.
    11. Alfred Kleinknecht & Remco Oostendorp & Menno Pradhan & C. W. M. Naastepad, 2006. "Flexible Labour, Firm Performance and the Dutch Job Creation Miracle," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(2), pages 171-187.
    12. Pasquale Tridico, 2007. "Flessibilità e istituzioni nel mercato del lavoro: dagli economisti classici agli economisti istituzionalisti," Working Papers 0706, CREI Università degli Studi Roma Tre, revised 2007.
    13. Raffaele Miniaci & Guglielmo Weber, 1999. "The Italian Recession Of 1993: Aggregate Implications Of Microeconomic Evidence," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 237-249, May.
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    15. Enrico Sergio Levrero & Antonella Stirati, 2005. "Distribuzione del reddito e prezzi relativi in Italia 1970-2002," Politica economica, Società editrice il Mulino, issue 3, pages 401-434.
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    Cited by:

    1. Jacopo Zotti, 2015. "The Long Italian Stagnation and the Welfare Effects of Outsourcing," Working Papers 2015.105, Fondazione Eni Enrico Mattei.
    2. Marcelo Vieta, 2015. "The Italian Road to Creating Worker Cooperatives from Worker Buyouts: Italy�s Worker-Recuperated Enterprises and the Legge Marcora Framework," Euricse Working Papers 1578, Euricse (European Research Institute on Cooperative and Social Enterprises).

    More about this item

    Keywords

    Labour market; labour policies; income distribution; productivity; wage; crisis;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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