{
  "title": "Labor Market Reforms and Earnings Dynamics: the Italian Case",
  "publication": "IMF Working Papers, May 20, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/05/20/labor-market-reforms-and-earnings-dynamics-the-italian-case-50247",
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  "summary": "This paper summarizes statistics on the key aspects of the distribution of earnings levels and earnings changes using administrative (social security) data from Italy between 1985 and 2016.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Paper summarizes statistics on the key aspects of the distribution of earnings levels and earnings changes using administrative (social security) data from Italy between 1985 and 2016.\n- Time covered: 1985–2016.\n- Authors: Davide Malacrino, Luigi Pistaferri.\n- Publication: IMF Working Papers, Working Paper No. 2021/142, Issue 142, Volume 2021, Pages: 49.\n- DOI: https://doi.org/10.5089/9781513573748.001\n- ISBN: 9781513573748\n- ISSN: 1018-5941\n- Stock No: WPIEA2021142"
    },
    {
      "heading": "Key findings",
      "content": "- Earnings inequality increased during 1985–2016.\n- Earnings volatility increased during 1985–2016.\n- Earnings mobility did not change significantly over the period.\n- Labor market reforms of the 1990s and 2000s induced a substantial rise in fixed-term and part-time employment.\n- The rise in part-time work explains much of the rise in earnings inequality.\n- The rise in fixed-term contracts explains much of the rise in earnings volatility."
    },
    {
      "heading": "Mechanisms through hours worked",
      "content": "- Both part-time work and fixed-term contracts affect the earnings distribution through hours worked:\n  - Part-time jobs reduce hours worked within a week.\n  - Fixed-term contracts reduce the number of weeks worked during the year and increase their volatility."
    },
    {
      "heading": "Evidence on transition to permanent employment",
      "content": "- The authors find weak evidence that fixed-term contracts represent a \"stepping-stone\" to permanent employment."
    },
    {
      "heading": "Productivity and human capital implications",
      "content": "- The paper offers suggestive evidence that the labor market reforms contributed to the slowdown in labor productivity in Italy.\n- Proposed channel: reforms delayed human capital accumulation (in the form of general and firm-specific experience) of recent cohorts.\n\nLabor Market Reforms and Earnings Dynamics: the Italian Case, Davide Malacrino and Luigi Pistaferri, IMF Working Papers 2021, 142 (2021).\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/05/20/labor-market-reforms-and-earnings-dynamics-the-italian-case-50247"
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    "Authors: Davide Malacrino, Luigi Pistaferri",
    "Published: May 20, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513573748.001",
    "Paper summarizes statistics on the key aspects of the distribution of earnings levels and earnings changes using administrative (social security) data from Italy between 1985 and 2016.",
    "Time covered: 1985–2016.",
    "Authors: Davide Malacrino, Luigi Pistaferri.",
    "Publication: IMF Working Papers, Working Paper No. 2021/142, Issue 142, Volume 2021, Pages: 49.",
    "DOI: https://doi.org/10.5089/9781513573748.001",
    "ISBN: 9781513573748",
    "ISSN: 1018-5941",
    "Stock No: WPIEA2021142",
    "Earnings inequality increased during 1985–2016.",
    "Earnings volatility increased during 1985–2016.",
    "Earnings mobility did not change significantly over the period.",
    "Labor market reforms of the 1990s and 2000s induced a substantial rise in fixed-term and part-time employment.",
    "The rise in part-time work explains much of the rise in earnings inequality.",
    "The rise in fixed-term contracts explains much of the rise in earnings volatility.",
    "Both part-time work and fixed-term contracts affect the earnings distribution through hours worked:",
    "The authors find weak evidence that fixed-term contracts represent a \"stepping-stone\" to permanent employment.",
    "The paper offers suggestive evidence that the labor market reforms contributed to the slowdown in labor productivity in Italy.",
    "Proposed channel: reforms delayed human capital accumulation (in the form of general and firm-specific experience) of recent cohorts.",
    "**Working Paper**"
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