The Effects of Partial Employment Protection Reforms: Evidence from Italy

• 成果类型: Article
• 署名作者: Daruich, Diego; Di Addario, Sabrina; Saggio, Raffaele
• 署名单位: European Central Bank; Bank of Italy; University of British Columbia; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdad012
• 发表日期: 2023
• 页码: 2880-2942
• 关键词: fixed-term contracts; temporary jobs; LABOR; wages; unemployment; PRODUCTIVITY; security; workers; IMPACT; FLOWS

摘要

We combine matched employer-employee data with firms' financial records to study a 2001 Italian reform that lifted constraints on the employment of temporary contract workers while maintaining rigid employment protection regulations for employees hired under permanent contracts. Exploiting the staggered implementation of the reform across different collective bargaining agreements, we find that this policy change led to an increase in the share of temporary contracts but failed to raise employment. The reform had both winners and losers. Firms are the main winners as the reform was successful in decreasing labor costs, leading to higher profits. By contrast, young workers are the main losers since their earnings were substantially depressed following the policy change. Rent-sharing estimates show that temporary workers receive only two-thirds of the rents shared by firms with permanent workers, helping explain most of the labor costs and earnings reductions caused by the reform.