The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers

Adriano Paggiaro, Enrico Rettore and Ugo Trivellato (trivell@stat.unipd.it)

No 2340, CESifo Working Paper Series from CESifo

Abstract: Liste di mobilità (LM) is an Italian labour market programme targeted to dismissed workers. There is a ‘passive’ component granting monetary benefits to employees dismissed by firms larger than 15 employees, and an ‘active’ component providing an employment subsidy to any firm hiring workers from the LM. Eligibility duration varies with the worker’s age at dismissal. We exploit the variability of these provisions to evaluate the impact of extending the duration of eligibility on re-employment probabilities and wages over the 36 months subsequent to enrolment in the programme. The average treatment effect is identified via a Regression Discontinuity Design. A major negative impact emerges for workers aged 50 or more granted the monetary benefit.

Keywords: active labour market policies; regression discontinuity design (search for similar items in EconPapers)
JEL-codes: J38 J65 J68 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: The Effect of Extending the Duration of Eligibility in an Italian Labour Market Programme for Dismissed Workers (2008)
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