Flexibility Policies and Re-employment Probabilities in Italy

Chiara Mussida, Dario Sciulli

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

6 Citazioni (Scopus)

Abstract

We analyze the effects of Italian labor market reforms “at the margin” on the probability of exiting from non-employment and entering permanent and temporary contracts, using WHIP data for the period 1985–2004. We find that the reforms have strengthened the duration dependence parameter, meaning a stronger labor market gap in employment opportunities between the short- and long-term non-employed. We suggest that in a flexible labor market, long-term unemployment is used by firms as a screening device to detect less productive workers. We also find evidence of greater differences in employment opportunities according to gender, and of reduced differences between regional labor markets.
Lingua originaleEnglish
pagine (da-a)621-651
Numero di pagine31
RivistaTHE B.E. JOURNAL OF ECONOMIC ANALYSIS & POLICY
Volume15
DOI
Stato di pubblicazionePubblicato - 2015

Keywords

  • duration dependence
  • duration models
  • reforms “at the margin”
  • signaling hypothesis

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