Italy's 'Employment-Rich' Recovery: A Closer Look

Bovini, Giulia; Viviano, Eliana

doi:10.2139/ssrn.3429806

Cited by 4 publications

(7 citation statements)

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“…Boeri and Garibaldi (2019) find evidence of a causal increase in permanent hirings in larger firms and an increase in the transformation from temporary to permanent contracts as large as 100 percent. Other papers (Ardito et al, 2019;Bovini et al, 2018;Sestito and Viviano, 2018) complement the previous findings by showing that gross permanent hires and conversions of fixed-term positions have significantly benefited from the 2015-2016 hiring subsidies across all types of firms and, more smoothly, from the new regulation of dismissals introduced by the 2015 Jobs Act for medium-large firms.…”

Section: Literaturementioning

confidence: 60%

Heterogeneous Paths to Stability

Di Porto,

Tealdi

2022

SSRN Journal

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Section: Literaturementioning

confidence: 60%

Heterogeneous Paths to Stability

Di Porto,

Tealdi

2022

SSRN Journal

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“…, 2018; Gautier et al. , 2018; Bovini and Viviano, 2018). In this paper we try to fill this gap evaluating whether hiring incentives introduced in 2017 affect firms' hiring strategies and two additional firms' outcomes.…”

Section: Introductionmentioning

confidence: 99%

“…Despite the rich literature on ALMPs' evaluation, there is still limited evidence on how active labour policies influence firm's behaviours and outcomes (Lechner et al, 2013;Lombardi et al, 2018;Gautier et al, 2018;Bovini and Viviano, 2018). In this paper we try to fill this gap evaluating whether hiring incentives introduced in 2017 affect firms' hiring strategies and two additional firms' outcomes.…”

Section: Introductionmentioning

confidence: 99%

“…This paper focuses on a particular ALMP: hiring incentives for private employers. This active policy is a demand-side market measure that includes making wage subsidies or targeted reductions in social security contributions available to employers to encourage them to hire new workers or to favour the conversion of temporary contracts into open-ended ones (Bovini and Viviano, 2018; Sestito and Viviano, 2018). The goal of hiring incentives is to reintegrate long-term unemployed into the labour market, to stimulate the labour demand in particular areas and sectors characterized by high unemployment or to support people at risk of labour-market exclusion such as women, older workers or the young.…”

Section: Introductionmentioning

confidence: 99%

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Evaluating hiring incentives: evidence from Italian firms

Brunetti¹,

Martino

Ricci³

2022

IJM

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PurposeThis paper analyses the effect of a particular Active Labour Market Policy, the hiring incentives, on firms hiring policies. The effects of a programme on firms' behaviour have in fact rarely been evaluated.Design/methodology/approachThe analysis is based on micro-data drawn from Rilevazione su Imprese Lavoro (RIL), conducted by Inapp in 2010, 2015 and 2018 on a representative sample of limited liability and partnership firms. The authors apply a policy evaluation framework to investigate the impact of the use of incentives in the short run. The authors infer the counterfactual policy scenario thanks to a survey question that asks about firms' behaviour in the absence of the incentives. The authors also control for firms' unobserved heterogeneity, including firm's fixed effects, and endogeneity issues, estimating a differences-in-differences model that exploit the longitudinal component of the RIL survey.FindingsThe authors find that the use of at least one incentive scheme in 2017 is associated with an increase in the share of newly hired of about 0.07 percentage point in the short run. Moreover, hiring incentives have a small positive relationship with the share of both young workers and temporary contracts. Finally, these results are robust to endogeneity issues.Originality/valueThe analysis provides an updated evaluation of the effectiveness of hiring incentives in Italy by focusing on firms' behaviour rather than on the evolution of individual employment. It identifies the impact by using a rich set of econometric methods as well as counterfactual analysis.

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“…The authors show that firms' financing heterogeneity amplifies the impact of an output shock on employment and that reducing the credit market friction, via restoring a more homogenous monetary policy transmission to firms' financing conditions, reduces employment volatility. 84 See, for example, Bovini and Viviano (2018). The amplitude of the changes in unemployment rate also vary substantially across euro area countries and tend to be higher for countries with higher average unemployment levels (Chart 21).…”

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confidence: 99%

Employment and the Conduct of Monetary Policy in the Euro Area

et al. 2021

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This report discusses the role of the European Union's full employment objective in the conduct of the ECB's monetary policy. It first reviews a range of indicators of full employment, highlights the heterogeneity of labour market outcomes within different groups in the population and across countries, and documents the flatness of the Phillips curve in the euro area. In this context, it is stressed that labour market structures and trend labour market outcomes are primarily determined by national economic policies. The report then recalls that, in many circumstances, inflation and employment move together and pursuing price stability is conducive to supporting employment. However, in response to economic shocks that give rise to a temporary trade-off between employment and inflation stabilisation, the ECB's medium-term orientation in pursuing price stability is shown to provide flexibility to contribute to the achievement of the EU's full employment objective. Regarding the conduct of monetary policy in a low interest rate environment, model-based simulations suggest that history-dependent policy approaches − which have been proposed to overcome lasting shortfalls of inflation due to the effective lower bound on nominal interest rates by a more persistent policy response to disinflationary shocks − can help to bring employment closer to full employment, even though their effectiveness depends on the strength of the postulated expectations channels. Finally, the importance of employment income and wealth inequality in the transmission of monetary policy strengthens the case for more persistent or forceful easing policies (in pursuit of price stability) when interest rates are constrained by their lower bound.

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Italy's 'Employment-Rich' Recovery: A Closer Look

Cited by 4 publications

References 0 publications

Heterogeneous Paths to Stability

Heterogeneous Paths to Stability

Evaluating hiring incentives: evidence from Italian firms

Employment and the Conduct of Monetary Policy in the Euro Area

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