Abstract
A long-standing economic tradition maintains that labour supply reacts to market tightness; its sensitivity to job quality has received less attention. If firms hire workers with both temporary and open-ended contracts, does participation increase when more permanent jobs are available? We investigate this relationship within a policy evaluation framework; in particular, we examine how labour supply reacted in Italy to a recent subsidy in favour of open-ended contracts. This subsidy increased labour force participation by 1.4% in 2001 and 2.1% in 2002. This increase was concentrated on males aged 35-54, with a low or at most a secondary schooling level.
| Original language | English |
|---|---|
| Pages (from-to) | 161-203 |
| Number of pages | 43 |
| Journal | Giornale degli Economisti ed Annali di Statistica |
| Volume | 63(2) |
| Publication status | Published - 2004 |