Dignity by Decree? The Occupational Consequences of Italy's Temporary Jobs Reform

Marco Palladino

In this research project we study the effects of the Dignity Decree (D.D. from now), a 2018 reform that increased the strictness of the regulation of temporary jobs in Italy. The D.D. consisted in a set of changes to labor market legislation aimed at reducing the recourse to temporary employment in favor of permanent jobs.

The D.D. is particularly relevant to study for two main reasons, related to its direction and its scope. First, it was the first reform to invert a trend of liberalizations that was going on uninterrupted since the 1990s in European labor markets. Second, the reform had a substantial impact on the strictness of labor market regulation, acting through many different levers: according to OECD indicators the reform brought Italy to have the strictest level of temporary employment regulation among the largest European economies

We currently have a complementary project that looks at the reaction of firms to the Reform, where we provide empirical evidence that firms react in different ways to a change in the strictness of temporary contracts regulation: some substituted from temporary to permanent employment; others destroyed jobs.

In this other project, we aim to look at workers. Who are the winners and losers of the reform? We would investigate which workers increased their likelihood to be in a permanent position and which ones instead ended up unemployed.

Did the reform also affect the retributions margin? We would examine whether the increase in permanent employment induced by the Decree has been associated with an earning premium, or whether this dimension has been traded off for more security in the market.

Membres du projet :

  • Marco Palladino, Sciences Po
  • Matteo Sartori, CEMFI

État du projet : en cours

Ce projet est financé par la chaire Sécurisation des Parcours Professionnels.