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Labour market reforms in Italy: evaluating the effects of the Jobs Act

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  • Marta Fana
  • Dario Guarascio
  • Valeria Cirillo

Abstract

Law 183 of 2014, evocatively named the "Jobs Act", has determined a deep change in the Italian industrial relations. Bringing at completion a reform process begun in the 1990s, the Jobs Act has introduced a new contract type -"contratto a tutele crescenti"- implying a substantial downsize of obligation for workers' reinstatement in case of firms invalidly firing them. The new permanent contract is therefore deprived of the substantial re- quirements of an open-ended contract. The Law has also weakened the legal constraints for firms intending to monitor workers through electronic devices and introduced new incentives for firms using temporary contracts. This article frames the Jobs Act within the overall labour market reform process occurred in Italy since mid-nineties and provides a first evaluation of its impacts on the Italian labour market. Taking advantage of different data sources (administrative and labour force data) and concentrating the analysis over the period after the Jobs Act implementation, the investi- gation provides the following results: the expected boost in employment growth is not detected; an increase in the share of temporary contracts over the open-ended ones is observed; a raise of part-time contracts within the new permanent positions emerges. The analysis shows that the Jobs Act failed in achieving its main goals. We discuss the observed evidence evaluating the appropriateness of the Law 183/2014 in the present Italian economic context accounting, in particular, for the structural effects of the recent crisis.

Suggested Citation

  • Marta Fana & Dario Guarascio & Valeria Cirillo, 2015. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," LEM Papers Series 2015/31, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  • Handle: RePEc:ssa:lemwps:2015/31
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    Cited by:

    1. Nascia, Leopoldo & Pianta, Mario, 2018. "Research and innovation policy in Italy," MPRA Paper 89510, University Library of Munich, Germany.
    2. Eichhorst, Werner & Marx, Paul, 2019. "How Stable Is Labour Market Dualism? Reforms of Employment Protection in Nine European Countries," IZA Discussion Papers 12309, Institute of Labor Economics (IZA).
    3. repec:spr:italej:v:4:y:2018:i:3:d:10.1007_s40797-018-0077-3 is not listed on IDEAS
    4. Juan Carlos Cuestas & Javier Ordóñez & Karsten Staehr, 2019. "Unit labour costs and the dynamics of output and unemployment in the southern European crisis countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(3), pages 597-616, August.
    5. Bosco, Maria Giovanna & Valeriani, Elisa, 2018. "Labour contracts and stepping-stone effect in Italy: A multinomial analysis," Economics Discussion Papers 2018-13, Kiel Institute for the World Economy (IfW).
    6. repec:spr:italej:v:3:y:2017:i:2:d:10.1007_s40797-017-0057-z is not listed on IDEAS
    7. Tito Boeri & Pietro Garibaldi, 2019. "A Tale of Comprehensive Labor Market Reforms: Evidence from the Italian Jobs Act," CEP Discussion Papers dp1613, Centre for Economic Performance, LSE.
    8. Armanda Cetrulo & Valeria Cirillo & Dario Guarascio, 2018. "Weaker jobs, weaker innovation. Exploring the temporary employment-product innovation nexus," LEM Papers Series 2018/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Caiani, Alessandro & Russo, Alberto & Gallegati, Mauro, 2016. "Does Inequality Hamper Innovation and Growth?," MPRA Paper 71864, University Library of Munich, Germany.
    10. repec:bla:jcmkts:v:55:y:2017:i::p:118-132 is not listed on IDEAS
    11. Alcidi, Cinzia & Gros, Daniel, 2017. "How to strengthen the European Semester?," CEPS Papers 13292, Centre for European Policy Studies.
    12. Schrader, Klaus & Ulivelli, Marta, 2017. "Italy: A crisis country of tomorrow? Insights from the Italian labor market," Kiel Policy Brief 107, Kiel Institute for the World Economy (IfW).
    13. repec:scn:mngsci:y:2019:i:1:p:96-112 is not listed on IDEAS
    14. Scicchitano, Sergio & Biagetti, Marco & Chirumbolo, Antonio, 2018. "More insecure and less paid? The effect of perceived job insecurity on wage distribution," GLO Discussion Paper Series 293, Global Labor Organization (GLO).
    15. Paolo Sestito & Eliana Viviano, 2016. "Hiring incentives and/or firing cost reduction? Evaluating the impact of the 2015 policies on the Italian labour market," Questioni di Economia e Finanza (Occasional Papers) 325, Bank of Italy, Economic Research and International Relations Area.
    16. Lorenti, Angelo & Dudel, Christian & Myrskylä, Mikko, 2018. "The legacy of the great recession in Italy: a wider geographical, gender, and generational gap in working life expectancy," LSE Research Online Documents on Economics 88302, London School of Economics and Political Science, LSE Library.
    17. repec:spr:soinre:v:142:y:2019:i:1:d:10.1007_s11205-018-1910-7 is not listed on IDEAS
    18. Maria Chiaria Morandini, 2016. "Flexibilising the Labour Market: Who Wants to Loosen Employment Protection Legislation in Italy?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01306097, HAL.
    19. repec:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-017-0054-3 is not listed on IDEAS
    20. repec:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0103-9 is not listed on IDEAS
    21. repec:spr:joevec:v:29:y:2019:i:1:d:10.1007_s00191-018-0554-8 is not listed on IDEAS
    22. Maria Chiara Morandini, 2016. "Flexibilising the Labour Market: Who Wants to Loosen Employment Protection Legislation in Italy?," Documents de travail du Centre d'Economie de la Sorbonne 16023, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    23. Guarascio, Dario & Gualtieri, Valentina & Quaranta, Roberto, 2018. "Does routinization affect occupation dynamics? Evidence from the ‘Italian O*Net’ data," MPRA Paper 89585, University Library of Munich, Germany.
    24. Valeria Cirillo & Rinaldo Evangelista & Dario Guarascio & Matteo Sostero, 2019. "Digitalization, routineness and employment: An exploration on Italian task-based data," LEM Papers Series 2019/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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