Labour Market Institutions and Flexibility in Italy

Abstract

The paper surveys three broad categories of labor market institutions in Italy: employment protection legislation unemployment benefit systems and wage bargaining arrangements In each w e the recent evolution and current state of Italian institutions are evaluated and compared With those in other major European countries

Labour Market Performance and Institutions in Greece

“…7 The mandatory intervention of the Ministry of Labour in cases where prior consultation fails to reach agreement may impart a 'anti-dismissal' bias in the system, especially in cases where large firms are concerned. Although there has been no empirical work assessing the impact of these rules on employment in Greece, evidence from Italy -where dismissal rules are also strict -has shown that firing costs have been an important factor in slowing down adjustment of the work force (see the discussion in Demekas 1995).…”

“…CH04DEMA.QXD 9/25/07 1:38 AM Page 101 Sources: Own calculations; Demekas (1995);and Layard, Nickell and Jackman (1991).…”

Policies for the Unemployed and Social Shock Absorbers: The Italian Experience

“…Disability pensions have been used as Demekas 1995;INPS 1995;Del Boca 1995;Confindustria 1995;Guarna 1994 assistance benefits in a biased way, thanks to their relatively lax eligibility requirements. Social benefits for the needy -usually the elderly -are provided by local authorities, with the benefit levels and duration varying widely across regions.…”

Political Exchange and Bargaining Reform in Italy and Spain

“…Finally, according to the 1993 Pact, the regional-level bargaining is substituted for company-level bargaining in those regions where small companies (SMEs) predominate. This helps the unions to solve the problem of the lack of coverage of collective bargaining and union presence in SMEs (Demekas, 1995).…”