Interaction effects of region-level GDP per capita and age on labour market transition rates in Italy

Abstract

The aim of this paper is to measure the effect of the interaction between age for the population of males and females aged 18 to 74 and region-level GDP per capita on labour market transition probabilities in Italy. We compare different occupational states in a sample of males and females who remained in their region of residence at two points in time (12 months apart). We estimate the transition probabilities using a flexible hierarchical logit model with interaction effects between worker age and region-level GDP per capita. We apply this model using longitudinal data from the Italian Labour Force Survey that cover the 2004-2013 period. We find empirical support for the assumption that people in the same age cohort have different labour market opportunities based on the level of GDP per capita in their region of residence. These differences are particularly relevant among younger workers. JEL Classification: C14, J01, J21, J68

Determinants of the Choice of Job Search Channels by the Unemployed Using a Multivariate Probit Model

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“…Instead, as compared to the reference category (35–44 years old), when unemployed individuals have job experience, the decrease in multichannel attitude becomes more important only after 65 years of age (AME equal to − 0.89). The difficulty in employment re-entry of unemployed individuals close to retirement, as observed in the study by Zanin and Calabrese ( 2017 ), is thereby the result of a mix of issues that, in a vicious loop, go from the lack of some individual skills (e.g., motivation, willingness to lifelong learning, technology skills) and less willingness to move for a job to matters of business management (e.g., firms have higher costs when hiring an older unemployed person than a younger one), and so on, leading to the discouragement of unemployed individuals. Due to the aforementioned or other barriers, we assume this might lead the oldest unemployed individuals to search for a job with less effort.…”

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“…Cracolici et al. 2009 ; Zanin and Calabrese 2017 ; Barbieri and Mussida 2018 ). The matter of unemployment has not only economic costs but also social costs that relate strongly to unemployment duration (Ochsen and Welsch 2011 ).…”

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