Welfare reforms and labour supply in Italy

Agar Brugiavini

No 2009:29, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper looks at welfare reforms in Italy and their effects on labour supply. I focus on social security reforms, which have taken place in the 1990s and on labour market reforms. Old age social security expenditure in Italy is high (14% of GDP) and the system has been very generous on early retirement possibilities: the reforms have tried to tackle these issues with mixed results. The labour market reforms have addressed the rigidity of the labour market by making it easier for firms to hire on a short-term basis. However the UI system is limited to open-ended contracts and coverage is also restricted, so that young workers employed in short-term contracts have very little protection from the welfare state.

Keywords: Social security system; unemployment insurance; labour supply (search for similar items in EconPapers)
JEL-codes: H53 H55 I38 J08 J26 J65 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2009-12-16
New Economics Papers: this item is included in nep-age, nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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