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Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy

Gianna Claudia Claudia Giannelli (), Ursula Jaenichen and Claudia Villosio ()
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Ursula Jaenichen: Institute for Employment Research

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: According to the aims of the labour market reforms of the 90s implemented in many European countries, workers may stay at their first job for a shorter time, but should be able to switch jobs easily. This would generate a trade-off between job opportunities and job stability. This paper addresses this issue using administrative longitudinal data for Germany and Italy, two countries which have undergone changes in regulations that can be summarised under the header of “deregulation”.The estimated piecewise constant job and employment duration models show that changes in the durations of the first job and employment - measured as the sum of multiple consecutive jobs - are observed in periods of labour market reforms. However, the existence of a trade-off is not confirmed by the results. In Germany, men have experienced an increase in employment stability over time, mated with somewhat longer job durations, while women have not benefitted from an increase in employment durations as a compensation for the marked decrease in their first job durations. In Italy, employment stability of the new entrants of both sexes has not improved after the reforms. The reduction in the duration of the first job has not been counterbalanced by an increase in the opportunity to find rapidly another job. These results suggest that the objective of increasing job opportunities by means of labour market deregulation has not been fully achieved.

Keywords: employment duration; work career; tenure; precarious jobs; labour market reforms; mixed proportional hazard (search for similar items in EconPapers)
JEL-codes: J62 J64 J68 K31 C41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-lab
Date: 2010
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Working Paper: Have labour market reforms at the turn of the millennium changed job durations of the new entrants? A comparative study for Germany and Italy (2009) Downloads
Working Paper: Have Labour Market Reforms at the Turn of the Millennium Changed Job Durations of the New Entrants? A Comparative Study for Germany and Italy (2009) Downloads
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