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Institutional Rigidities and Employment Rigidity on the Italian Labour Market

Institutional Rigidities and Employment Rigidity on the Italian Labour Market

Year:    2008

Author:    Jiménez-Rodríguez, Rebeca, Russo, Giuseppe

Applied Economics Quarterly, Vol. 54 (2008), Iss. 3 : pp. 217–227

Abstract

A well-established result in the theoretical literature on labour market flexibility is that the employment should be more volatile in “flexible” labour markets. Over the last 35 years, Italy gives a good example of a transition from an over-regulated labour market into a quite more flexible one. According to the theory, the deregulation is expected to increase the employment variance. Despite the anecdotal evidence reported in the press, the literature hardly finds any evidence for such an effect. This paper exploits time-series of several employment indicators since 1980, allowing us to compare decades with different labour market regulation. All the considered series show evidence of a structural break with an increase in their variance after the deregulation, confirming the expected pattern. This gives some support to the concerns for increased job insecurity.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/aeq.54.3.217

Applied Economics Quarterly, Vol. 54 (2008), Iss. 3 : pp. 217–227

Published online:    2008-08

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    11

Author Details

Jiménez-Rodríguez, Rebeca

Russo, Giuseppe

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    Sciulli, Dario

    Cuadernos de Economía, Vol. 36 (2013), Iss. 102 P.168

    https://doi.org/10.1016/j.cesjef.2013.04.002 [Citations: 0]
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    Kazanas, Thanassis | Miaouli, Natasha

    Economic Modelling, Vol. 37 (2014), Iss. P.368

    https://doi.org/10.1016/j.econmod.2013.11.027 [Citations: 1]
  3. AGGREGATE EMPLOYMENT DYNAMICS AND (PARTIAL) LABOUR MARKET REFORMS

    Jiménez-Rodríguez, Rebeca | Russo, Giuseppe

    Bulletin of Economic Research, Vol. 64 (2012), Iss. 3 P.430

    https://doi.org/10.1111/j.1467-8586.2011.00396.x [Citations: 12]