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Two-Tier Labor Market Reform And Entry Wage Of Protected Workers: Evidence From Italy

Author

Listed:
  • Patrizia Ordine
  • Giuseppe Rose

    (Dipartimento di Economia, Statistica e Finanza, Università della Calabria)

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%.

Suggested Citation

  • Patrizia Ordine & Giuseppe Rose, 2014. "Two-Tier Labor Market Reform And Entry Wage Of Protected Workers: Evidence From Italy," Working Papers 201410, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    • Handle: RePEc:clb:wpaper:201410
    as

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    File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP10_2014.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    EPL; Flexibility-at-the-Margin; Difference-in-Differences; Propensity Score; Matching Estimators;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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