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

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, 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 Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 168.

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Date of creation: 01 Oct 2006
Date of revision:
Handle: RePEc:sef:csefwp:168
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  12. E Wasmer, 1997. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," CEP Discussion Papers dp0369, Centre for Economic Performance, LSE.
  13. Stefano Maria Iacus & Giuseppe Porro, 2002. "Il lavoro interinale in Italia: uno sguardo all'offerta," Departmental Working Papers 2002-26, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  14. Dolado, Juan J. & Jansen, Marcel & Jimeno, Juan F., 2002. "A Matching Model of Crowding-Out and On-the-Job Search (with an Application to Spain)," IZA Discussion Papers 612, Institute for the Study of Labor (IZA).
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  17. Wang, Hung-Jen, 2002. "Heteroscedasticity and non-monotonic efficiency effects of a stochastic frontier model," MPRA Paper 31076, University Library of Munich, Germany.
  18. Davidson, James E H, et al, 1978. "Econometric Modelling of the Aggregate Time-Series Relationship between Consumers' Expenditure and Income in the United Kingdom," Economic Journal, Royal Economic Society, vol. 88(352), pages 661-92, December.
  19. Jovanovic, Boyan, 1984. "Matching, Turnover, and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 108-22, February.
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  22. Burgess, Simon & Profit, Stefan, 2001. "Externalities in the matching of workers and firms in ritain," Labour Economics, Elsevier, vol. 8(3), pages 313-333, June.
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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. Tommaso NANNICINI, 2004. "The Take-off of Temporary Employment in the Italian Labor Market," Economics Working Papers ECO2004/09, European University Institute.
  26. 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.
  27. Tommaso Nannicini, 2004. "Temporary Workers: How Temporary Are They?," Economics Working Papers ECO2004/23, European University Institute.
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  29. 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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