Trends and dynamics in the Italian labour market. An empirical evaluation using RFL data, 1993-2007

The empirical analysis carried out in this paper represents the basis for the construction of the labour market module in the dynamic microsimulation model CAPP_DYN. Using LFS longitudinal data for the period 1993-2007, we describe the recent trends on the Italian labour market and provide an international comparison with other European countries. In order to investigate the determinants of labour market transitions, multinomial logistic regressions are implemented, and the estimated parameters are then used to model transition probabilities in the dynamic microsimulation model.