 Institutional Rigidities and Employment Rigidity on the Italian Labour MarketRebeca Jiménez-Rodríguez and Giuseppe Russo Applied Economics Quarterly (formerly: Konjunkturpolitik), 2008, vol. 54, issue 3, 217-227 Abstract: A well-established result in the theoretical literature on labour market flexibility is that the employment should be more volatile in “flexible” labour markets. Over the last 35 years, Italy gives a good example of a transition from an over-regulated labour market into a quite more flexible one. According to the theory, the deregulation is expected to increase the employment variance. Despite the anecdotal evidence reported in the press, the literature hardly finds any evidence for such an effect. This paper exploits time-series of several employment indicators since 1980, allowing us to compare decades with different labour market regulation. All the considered series show evidence of a structural break with an increase in their variance after the deregulation, confirming the expected pattern. This gives some support to the concerns for increased job insecurity. Keywords: Labour market flexibility; volatility; breaks (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:aeq:aeqaeq:v54_y2008_i3_q3_p217-227 Ordering information: This journal article can be ordered from Access Statistics for this article Applied Economics Quarterly (formerly: Konjunkturpolitik) is currently edited by Ansgar Belke, Uwe Sunde and Winfried Koeniger More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot, Berlin |
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