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 originale | English |
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pagine (da-a) | 621-651 |
Numero di pagine | 31 |
Rivista | THE B.E. JOURNAL OF ECONOMIC ANALYSIS & POLICY |
Volume | 15 |
DOI | |
Stato di pubblicazione | Pubblicato - 2015 |
Keywords
- duration dependence
- duration models
- reforms “at the margin”
- signaling hypothesis