Campanale, C. and F.Turino
Applied Economics Letters – 23.13, (2016). 930-935

Keywords: Labor market reforms, employment, general equilibrium, Italy


Abstract: In the 1990s several European countries liberalized the use of fixed-term labour contracts in an effort to reduce persistently low employment growth. This article studies the effect of these reforms through the lens of a version of the Hopenhayn and Rogerson (1993) model calibrated on Italian data. We find no effect of the reform on total employment in steady state