IDEAS home Printed from https://ideas.repec.org/a/bla/labour/v12y1998i3p427-449.html
   My bibliography  Save this article

How Much Does Hiring and Firing Cost? Survey Evidence from a Sample of Italian Firms

Author

Listed:
  • Alessandra Del Boca
  • Paola Rota

Abstract

We analyse the Italian labour market, which is typically considered to be highly regulated. We focus on the costs imposed on firms by the institutional environment in which they operate, and on the adjustment strategies that they pursue as a result. We have followed two complementary approaches: the analysis of the development of the laws relating to hiring and firing, together with a set of interviews of 61 manufacturing firms. This also allows us to quantify the extent of turnover costs on the total labour costs. Hiring costs, which include recruiting and training, range between 2.0 and 2.6 months of labour costs; firing costs range from less than half a monthly labour cost to 20 months of labour costs in cases of conflict.

Suggested Citation

  • Alessandra Del Boca & Paola Rota, 1998. "How Much Does Hiring and Firing Cost? Survey Evidence from a Sample of Italian Firms," LABOUR, CEIS, vol. 12(3), pages 427-449, September.
    • Handle: RePEc:bla:labour:v:12:y:1998:i:3:p:427-449
    DOI: 10.1111/1467-9914.00074
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9914.00074
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9914.00074?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Malgarini & Massimo Mancini & Lia Pacelli, 2013. "Temporary hires and innovative investments," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2361-2370, June.
    2. Matteo Cacciatore & Giuseppe Fiori, 2016. "The Macroeconomic Effects of Goods and Labor Marlet Deregulation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 20, pages 1-24, April.
    3. Eugene Furman & Adam Diamant & Murat Kristal, 2021. "Customer Acquisition and Retention: A Fluid Approach for Staffing," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 4236-4257, November.
    4. Mitra, Aruni, 2024. "The productivity puzzle and the decline of unions," Journal of Economic Dynamics and Control, Elsevier, vol. 159(C).
    5. Christian Grund, 2006. "Severance payments for dismissed employees in Germany," European Journal of Law and Economics, Springer, vol. 22(1), pages 49-71, July.
    6. Santiago Caicedo & Miguel Espinosa & Arthur Seibold, 2022. "Unwilling to Train?—Firm Responses to the Colombian Apprenticeship Regulation," Econometrica, Econometric Society, vol. 90(2), pages 507-550, March.
    7. Benoît Pierre FREYENS, 2010. "Measuring firing costs: The case for direct methods," International Labour Review, International Labour Organization, vol. 149(3), pages 287-313, September.
    8. Francesca Marino, 2013. "The Italian productivity slowdown in a Real Business Cycle perspective," SERIES 0046, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Apr 2013.
    9. Jung, Sven, 2014. "Employment adjustment in German firms (Betriebliche Beschäftigungsanpassung in Deutschland)," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 47(1-2), pages 83-106.
    10. Stephen DeLoach & Jennifer Platania, 2013. "The Macroeconomic Consequences of Financing Health Insurance," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(2), pages 107-129, May.
    11. Lia Pacelli, 2002. "Fixed Term Contracts, Social Security Rebates and Labour Demand in Italy," LABORatorio R. Revelli Working Papers Series 7, LABORatorio R. Revelli, Centre for Employment Studies.
    12. Benoit Freyens & Paul Oslington, 2007. "Dismissal Costs and Their Impact on Employment: Evidence from Australian Small and Medium Enterprises," The Economic Record, The Economic Society of Australia, vol. 83(260), pages 1-15, March.
    13. Michele Battisti & Ryan Michaels & Choonsung Park, 2016. "Labor supply within the firm," ifo Working Paper Series 222, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    14. Månsson, Jonas, 2006. "A Note on the Shape of the Cost Function for Recruiting Labour," CAFO Working Papers 2006:4, Linnaeus University, Centre for Labour Market Policy Research (CAFO), School of Business and Economics.
    15. Pedro Gomes, 2009. "Labour market effects of public sector employment and wages," 2009 Meeting Papers 313, Society for Economic Dynamics.
    16. Dibiasi, Andreas & Sarferaz, Samad, 2023. "Measuring macroeconomic uncertainty: A cross-country analysis," European Economic Review, Elsevier, vol. 153(C).
    17. Josué Diwambuena & Raquel Fonseca & Stefan Schubert, 2023. "Labor Market Institutions, Productivity, and the Business Cycle: An Application to Italy," Cahiers de recherche / Working Papers 2302, Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics.
    18. Sven Jung, 2014. "Employment adjustment in German firms [Betriebliche Beschäftigungsanpassung in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(1), pages 83-106, March.
    19. Andreas Dibiasi & Heiner Mikosch & Samad Sarferaz, 2021. "Uncertainty Shocks, Adjustment Costs and Firm Beliefs: Evidence From a Representative Survey," KOF Working papers 21-496, KOF Swiss Economic Institute, ETH Zurich.
    20. Francesca Marino, 2016. "The Italian productivity slowdown in a Real Business Cycle perspective," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(2), pages 171-193, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:12:y:1998:i:3:p:427-449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/csrotit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.