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Matching Efficiency and Labour Market Reform in Italy. A Macroeconometric Assessment

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Abstract

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. We re-parameterise the matching function as a Beveridge Curve and estimate it as a production frontier. We find huge differences in matching efficiency between the South and the rest of the country. The legge Treu appears to have reduced unemployment in the more developed regions of the country but did not greatly affect the matching efficiency of the regional labour markets.

Suggested Citation

  • Sergio Destefanis & Raquel Fonseca, 2005. "Matching Efficiency and Labour Market Reform in Italy. A Macroeconometric Assessment," CELPE Discussion Papers 93, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  • Handle: RePEc:sal:celpdp:93
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    References listed on IDEAS

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    1. Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, "undated". "A Matching Model of Crowding-Out and On-the-Job Search (with an application to Spain)," Working Papers 2002-16, FEDEA.
    2. Fahr, René & Sunde, Uwe, 2002. "Estimations of Occupational and Regional Matching Efficiencies Using Stochastic Production Frontier Models," IZA Discussion Papers 552, Institute of Labor Economics (IZA).
    3. Collard, Fabrice & Fonseca, Raquel & Munoz, Rafael, 2002. "Spanish unemployment persistence and the ladder effect," LSE Research Online Documents on Economics 20073, London School of Economics and Political Science, LSE Library.
    4. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877.
    5. Tommaso Nannicini, 2004. "Temporary Workers: How Temporary Are They?," Economics Working Papers ECO2004/23, European University Institute.
    6. Andrea Montanino & Paolo Sestito, 2003. "Le molte funzioni del lavoro interinale in Italia: da strumento di flessibilità a contratto di prova," Rivista di Politica Economica, SIPI Spa, vol. 93(2), pages 115-148, March-Apr.
    7. Rene Fahr & Uwe Sunde, 2006. "Regional dependencies in job creation: an efficiency analysis for Western Germany," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1193-1206.
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    More about this item

    Keywords

    temporary contracts; matching efficiency; regional disparities;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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