Matching Efficiency and Labour Market Reform in Italy: A Macroeconometric Assessment

Sergio Destefanis () and Raquel Fonseca ()

LABOUR, 2007, vol. 21, issue 1, pages 57-84

Abstract: A matching theory approach is used to assess the impact on the Italian labour market of the 1997 Treu Act (legge Treu), which considerably eased the regulation of temporary work and favoured its growth in Italy. We re-parameterize the matching function as a Beveridge Curve and estimate it as a production frontier, finding huge differences in matching efficiency between the South and the rest of the country. The Treu Act appears to have improved matching efficiency in the North of the country, particularly for skilled workers, but also to have strengthened competition among skilled and unskilled workers, especially in the South. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

Date: 2007
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Working Paper: Matching Efficiency and Labour Market Reform in Italy. A Macroeconometric Assessment (2005)
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