Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202770
Authors: 
O'Higgins, Niall
Pica, Giovanni
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12424
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We analyse theoretically and empirically the effects on young people's labour market outcomes of two specific labour market institutions and their interaction: employment protection legislation andactive labour market policy. The paper examines recent policy reforms in Italy focusing on the impact of the 2012 Fornero reforms of employment protection legislation as well as the initial impact of the EU-wide Youth Guarantee scheme introduced in Italy in March 2014. The paper then examines how these two policy reforms interacted. The analysis first confirms the finding that the Fornero reform increased permanent hires particularly amongst the very youngest workers; it then goes on to find that the YG was indeed successful in increasing the hires of young people, although this operated through a statistically significant increase in female hires on temporary contracts. Third, it finds some evidence of dampening effect of the YG on EPL reforms as predicted by theory.
Subjects: 
youth employment
job search
ALMPs
EPL
JEL: 
J13
J63
J68
Document Type: 
Working Paper

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