Abstract

http://ssrn.com/abstract=2275731
 


 



The Unintended Consequences of Italy's Labour Laws: How Extensive Labour Regulation Distorts the Italian Economy


Matthew M. Melchiorre


Competitive Enterprise Institute (CEI)

Emilio Rocca


Istituto Bruno Leoni

June 2013

Economic Affairs, Vol. 33, Issue 2, pp. 156-173, 2013

Abstract:     
Simple solutions to complex problems often have unintended and undesirable consequences. An example is Italy's approach to combating unemployment. Rigid laws designed to protect the employed perversely discourage businesses from hiring and people from working. They also encourage precarious temporary employment among young people, informal work, and under‐the‐table deals that compromise worker benefits. The numbers of Italy's unemployed and of those outside the workforce are much higher than official estimates suggest. Italy's employment protection legislation – arguably the most restrictive in Europe – creates that which it seeks to prevent: the insecurity of unemployment.

Number of Pages in PDF File: 18

Keywords: employment protection legislation, firm expansion, irregular employment, Italy, labour regulation

JEL Classification: D21, J00, K31

Accepted Paper Series


Date posted: June 7, 2013  

Suggested Citation

Melchiorre, Matthew M. and Rocca, Emilio, The Unintended Consequences of Italy's Labour Laws: How Extensive Labour Regulation Distorts the Italian Economy (June 2013). Economic Affairs, Vol. 33, Issue 2, pp. 156-173, 2013. Available at SSRN: http://ssrn.com/abstract=2275731 or http://dx.doi.org/10.1111/ecaf.12012

Contact Information

Matthew M. Melchiorre (Contact Author)
Competitive Enterprise Institute (CEI) ( email )
1899 L St. NW
Suite 1250
Washington, DC 20036
United States
Emilio Rocca
Istituto Bruno Leoni ( email )
via Bossi 1
Turin
Italy
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