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Labour Market Reform and the Beveridge Curve across Italian Regions

In: The European Labour Market. Regional Dimensions

Author

Listed:
  • Sergio Destefanis

    (Università di Salerno)

  • Raquel Fonseca

    (Université du Québec à Montréal)

Abstract

A frontier approach is utilised to estimate a matching function (reparameterised as a Beveridge curve) on data for the main Italian territorial areas (North, Centre, South) throughout the 1990s. The Southern labour market proves to be much less efficient than that in the rest of the country, especially in the case of unskilled labour. This approach is then utilised to assess the impact on the Italian labour market of the 1997 Treu Act, which greatly fostered the development of temporary work in Italy. This Act appears to have engendered an increase in labour demand, especially in the North and in the Centre. However, there is evidence of an outward shift of the Beveridge curve in the South, particularly as far as unskilled labour is concerned. The Treu Act then reduced unemployment in the more developed regions of the country, but did not favourably affect the overall matching efficiency of the Italian labour market.

Suggested Citation

  • Sergio Destefanis & Raquel Fonseca, 2006. "Labour Market Reform and the Beveridge Curve across Italian Regions," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market. Regional Dimensions, edition 1, chapter 6, pages 147-163, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:01-06
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    File URL: http://link.springer.com/chapter/10.1007/3-7908-1680-9_6
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    Cited by:

    1. Rene Fahr & Uwe Sunde, 2006. "Regional dependencies in job creation: an efficiency analysis for Western Germany," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1193-1206.

    More about this item

    Keywords

    matching function; Beveridge Curve; frontier approach; Treu reform.;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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