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The Impact of the Great Recession on the Italian Labour Market

In: Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution

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  • Francesco D'Amuri

Abstract

This chapter provides an assessment of the effects of the Great Recession on the Italian labour market. Two-thirds of the decrease in employment taking place during the 2008:4 to 2009:4 period were due to the fall in job-finding probabilities, while transitions out of employment significantly increased only for employees with flexible contracts. According to micro-level multiple stochastic imputations coherent with the evolution of the employment rate, income losses related to job terminations will be partially offset by the highly fragmented income support safety nets available. A stress test shows that income stabilization offered is pro-cyclical, while labour income inequality is driven by changes in employment: inequality among the employed seems to be rather insensitive to the composition of employment.

Suggested Citation

  • Francesco D'Amuri, 2011. "The Impact of the Great Recession on the Italian Labour Market," Research in Labor Economics, in: Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution, pages 155-180, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-9121(2011)0000032008
    DOI: 10.1108/S0147-9121(2011)0000032008
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