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We investigate how the flexibility of temporary contracts affects the probability of young workers to be upgraded into permanent employment. Theoretically, we explore the workers' career development in response to the change in flexibility within a search and matching model; empirically, we...
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Three features of real-life reforms of dual employment protection legislation (EPL) systems are particularly hard to study through the lens of standard labor-market search models: (i) the excess job turnover implied by dual EPL, (ii) the nonretroactive nature of EPL reforms, and (iii) the...
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-term unemployment rates, leading to the need to reform labour market institutions and make them more flexible. Flexible labour markets … employment and unemployment) but also to reduce the negative impacts on labour market of structural shocks. If we focus on the … significant differences in the impact of this common structural shock on the domestic labour markets. For mainstream economics …
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Empirical evidence indicates that lay-off costs consist of two elements, namely firing costs and severance payments. This paper investigates business cycle and steady state effects of firing costs and severance payments and discusses the differences. We find that severance payments imply a lower...
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What is the role of formal labor market institutions in the impact of crises on wages and employment? We study wage adjustment during the recent crisis in Italy's regulated labor market using the unregulated informal labor market as a counterfactual. We use a unique dataset on immigrant workers...
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