We document the effects of a change in the Italian Ordinary Unemployment Benefits Scheme on the job search process. As of January 2001, the replacement rate was raised from 30% to 40% and benefits' duration extended from 6 to 9 months for workers aged 50 or more. Our results show that (a) the...

We document the effects of a change in the replacement rate and potential duration of the Italian Ordinary unemployment benefits scheme on the job search process. As of January 2001, benefits were extended from 6 to 9 months selectively for workers aged 50 or more, and the replacement rate was...

The paper attempts at disentangling the main sources of the rise in the Italian unemployment rate over the last four decades on the basis of a small model a la Layard-Nickell, identified and estimated using a structural VAR approach. Unemployment movements are assumed to be driven by fully...