Flexibility Policies and Re-employment Probabilities in Italy

Mussida, Chiara; Sciulli, Dario

doi:10.1515/bejeap-2013-0180

Cited by 6 publications

(4 citation statements)

References 35 publications

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“…The crucial issue of the effective length of unemployment/non-employment spells is seldom documented. Mroz and Savage (2006) report re-employment probabilities for youth in the U.S. who experienced unemployment spells of 10 years or more; evidence of the same order of magnitude is provided by Gomes (2012) in his study of the U.K.; Mussida and Sciulli (2015) explore the Italian case and provide estimates of re-employment probabilities after layoff which are consistent with our findings.…”

Section: R E V I S E D P R O O Fsupporting

confidence: 81%

Is Long-Term Non-employment a Lifetime Disease?

Contini

Quaranta

2019

Ital Econ J

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Long-term non-employment (which is not long-term unemployment) has been almost neglected in the academic literature, long term here implying up to 15-25 years of absence from the labour market, let alone full and definitive exit. This study takes the lead from a previous paper (2017) in which the magnitude of long term nonemployment (LTNE) and its duration are estimated from administrative databases of Italy, Germany and Spain (Contini B, et al., IZA discussion papers, no.11167, 2017).In all three countries long-term nonemployment appears to be a lifetime disease for many workers who drop out of the (official) labour market and never return, left unsheltered from the welfare institutions. The main task of this work is an analytical exploration of the factors leading to LTNE development in Italy, estimated at almost 1.3 million male individuals (about as many as the officially unemployed), average duration exceeding 12 years. An econometric exploration indicates that it is often more profitable for employers to hire new unexperienced young workers in place of confirming individuals already onthe-job, leading to excessive turnover, long-term non-employment and waste of human capital. There are strong policy implications of this result as the EU Commission has for many years advocated low wages for new entrants and high contract flexibility as major instruments to promote youth employment.

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Section: R E V I S E D P R O O Fsupporting

confidence: 81%

Is Long-Term Non-employment a Lifetime Disease?

Contini

Quaranta

2019

Ital Econ J

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“…Evidence of the same order of magnitude is provided by P. Gomes (2012) in his study on the UK. Mussida and Sciulli (2015) explore the Italian case and provide estimates of re-employment probabilities after layoff which are consistent with our findings.…”

Section: A Short Overview Of Literaturesupporting

confidence: 79%

Explaining Non-Employment Magnitude and Duration: The Case of Italy

Contini

Quaranta

2017

SSRN Journal

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“…Some years before Abbring et al (2005) had indicated that state dependence persists also when selection issues related to workers' heterogeneity are included in the analysis. Mussida and Sciulli (2015) explore the effect of labour market flexibilisation policy for the Italian case and provide evidence that re-employment probabilities decreased after those reforms. According to Machin and Manning (1999), however, state dependence and workers' heterogeneity cannot be identified separately without untenable assumptions.…”

Section: A Short Survey Of Relevant Literaturementioning

confidence: 99%