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  • 1
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    Bonn: Institute of Labor Economics (IZA)
    Publication Date: 2018-07-17
    Description: In the past 25 years a vast number of Italian workers have become jobless for long periods of time, often dropping out of the labor market and becoming long-term inactives for the rest of their life. This process has long roots in the past and has been fuelled by Italy's poor economic performance. We intend to analyse its nature and derive policy implications for the years to come. We estimate long-term non-employment and its duration by means of Italian longitudinal databases of administrative origin. Long-term non-employment of men stands at 1.6 million individuals in 2012, about the size of male official unemployment, its average duration exceeding 14 years. We present a micro-econometric exploration of the underlying process. The main driving element works via a substitution effect: the relative cost of new entrants vs. that of retaining individuals already on-the-job has often been too high and widely responsible for such developments as it provides the employers with an incentive to layoff and fill the vacancy with a new entrant. Additional explanation is provided by the wide utilization of temporary and flexible contracts and by reasonable proxies of individual characteristics. Our conclusions indicate important drawbacks in the strategy advocated for many years by the EU Commission to promote youth employment.
    Keywords: J08 ; J11 ; J64 ; J68 ; ddc:330 ; inactivity ; long run consequences of unemployment/non employment
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 2
    Publication Date: 2018-07-17
    Description: This study proposes a new approach to the analysis of non-employment and its duration in Germany, Italy and Spain using administrative longitudinal databases. Non-employment includes the discouraged unemployed not entitled to draw unemployment benefits and the long-term inactive. Many of the non-employed individuals will never return to the official labour market. We estimate the magnitude and duration of non-employment, applying the survival methodology developed in recent years to deal with 'workforce disposal'. Long-term non-employment (LTNE) may lead to dramatic changes in individual lifestyles, family and childbearing projects, levels of poverty and welfare at large.
    Keywords: D1 ; J0 ; J1 ; J6 ; ddc:330 ; labor economics ; inactivity ; long-term unemployment ; turnover
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
    Location Call Number Expected Availability
    BibTip Others were also interested in ...
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