TWO-TIER LABOR MARKET REFORM AND ENTRY WAGE OF PROTECTED WORKERS: EVIDENCE FROM ITALY

Patrizia Ordine () and Giuseppe Rose

No 201410, Working Papers from Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF

Abstract: This study aims at investigating whether wage of workers entering positions entitled to employment protection may be affected by the introduction of a two-tier labor market regime. By using repeated cross-sections microdata, we apply difference-in-differences estimators - also combined with propensity score matching techniques - to evaluate the impact of the Italian labor market reform of 2003. The results are robust and show that after the policy implementation protected entrants experienced a reduction in earnings ranging between -3.0% and -6.0%.

Keywords: EPL; Flexibility-at-the-Margin; Difference-in-Differences; Propensity Score; Matching Estimators (search for similar items in EconPapers)
JEL-codes: J63 J64 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-07
New Economics Papers: this item is included in nep-eur and nep-lab
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