Matching Efficiency and Labour Market Reform in Italy: A Macroeconometric Assessment

28 Pages Posted: 1 Mar 2007

See all articles by Sergio Destefanis

Sergio Destefanis

University of Salerno

Raquel Fonseca

University of Quebec at Montreal (UQAM) - Faculty of Management (ESG); Rand Corporation; Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPÉE)

Abstract

A matching theory approach is used to assess the impact on the Italian labour market of the 1997 Treu Act (legge Treu), which considerably eased the regulation of temporary work and favoured its growth in Italy. We re-parameterize the matching function as a Beveridge Curve and estimate it as a production frontier, finding huge differences in matching efficiency between the South and the rest of the country. The Treu Act appears to have improved matching efficiency in the North of the country, particularly for skilled workers, but also to have strengthened competition among skilled and unskilled workers, especially in the South.

Suggested Citation

Destefanis, Sergio and Fonseca Benito, Raquel, Matching Efficiency and Labour Market Reform in Italy: A Macroeconometric Assessment. Labour, Vol. 21, No. 1, pp. 57-84, March 2007, Available at SSRN: https://ssrn.com/abstract=966522 or http://dx.doi.org/10.1111/j.1467-9914.2006.00368.x

Sergio Destefanis (Contact Author)

University of Salerno ( email )

Via Giovanni Paolo II, 132
Fisciano, Salerno 84084
Italy

Raquel Fonseca Benito

University of Quebec at Montreal (UQAM) - Faculty of Management (ESG) ( email )

Case postale 8888
Succursale Centre-ville
Montreal, Quebec H3C 3P8
Canada

Rand Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States

Centre interuniversitaire sur le risque, les politiques économiques et l'emploi (CIRPÉE) ( email )

Pavillon De Sève
Ste-Foy, Quebec G1K 7P4
Canada

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