The flexibility penalty in a long-term perspective

In this paper we study the effect of flexibility on both wages and the likelihood of work stabilisation, by focusing on flexibility when entering the labour market and on periods of career interruption. Our main goal is to evaluate how having entered the labour market with fixed-term contracts or having experienced periods of interruption of work can affect the likelihood of being given a permanent contract and the level of wages received in subsequent jobs. Unlike other works in the existing literature, this study deals with female and male workers separately. The analysis is carried out using a dataset put together by the Istituto per lo Sviluppo della Formazione Professionale dei Lavoratori – ISFOL (Institute for the Development of the Professional Training of Workers) based on a sample of Italian workers. The dataset is representative of the Italian population and contains detailed information on work experience previous to workers’ present occupation with details on types of contracts and causes of career interruptions. In the first part of the paper, we examine density functions of monthly and hourly wages relative to contractual characteristics of first jobs and the number of job changes and work interruptions. In the second part of the paper, we estimate separate earnings functions for the sample of men and women with full-time permanent contracts. We correct for selection in full-time work by estimating a first-stage equation of the probability to have a permanent job and including the Mill’s ratio in the second-stage wage function. Estimates show that flexibility affects men and women differently, both in terms of levels of wages, and the likelihood of accessing permanent jobs. Some differences also emerge with regard to the causes of career interruptions.Flexibility, Access to permanent jobs, wage penalty

The Italian Labour Market and the Crisis

The aim of this paper is to analyse the effects of the crisis on the Italian labour market. The Italian labour market is characterized by deep gender differences and regional variability. The data show that the crisis lead to an increase in the gap of female employment rates and women?s inactivity rates with respect to Europe. The North of Italy experienced a higher increase in unemployment than the South, where many people withdrew from the labour market because of poor employment prospects. Moreover, in Italy, the increase in unemployment has been mitigated by the increase in the number of workers having access to the wage supplementation fund who are not computed within the unemployed. However, the heterogeneity in the system of unemployment benefits increased inequalities amongst the unemployed. Using a micro simulation techniques, we estimate the effect of the crisis on income distribution and poverty and find that at the national level, the population showed a reduction in equivalised household income by about 1 percent. The limited impact on household?s equivalent income can be connected to the relatively high share of unemployed who are young with relatively low income and sustained by other members of the householdlabour market, poverty, economic crisis

The Italian Labour Market and the Crisis

The aim of this paper is to analyse the effects of the crisis on the Italian labour market. The Italian labour market is characterized by deep gender differences and regional variability. The data show that the crisis lead to an increase in the gap of female employment rates and womens inactivity rates with respect to Europe. The North of Italy experienced a higher increase in unemployment than the South, where many people withdrew from the labour market because of poor employment prospects. Moreover, in Italy, the increase in unemployment has been mitigated by the increase in the number of workers having access to the wage supplementation fund who are not computed within the unemployed. However, the heterogeneity in the system of unemployment benefits increased inequalities amongst the unemployed. Using a micro simulation techniques, we estimate the effect of the crisis on income distribution and poverty and find that at the national level, the population showed a reduction in equivalised household income by about 1 percent. The limited impact on household's equivalent income can be connected to the relatively high share of unemployed who are young with relatively low income and sustained by other members of the household.labour market, poverty, economic crisis

Gender differences in productivity rewards in Italy: the role of human capital

In this paper we evaluate the gender wage gap component due to differences in characteristics’ rewards in Italy. The main focus is on the relationship between human capital characteristics and gender differences in rewards. We propose a methodology that combines the quantile regression analysis with non-parametric procedures for the estimation of the probability density functions of reward differentials in order to evaluate the evolution of the gap due to human capital characteristics. The analysis is carried out on Italian data taken from the latest available cross-section of the European Community Household Panel (2001). Our study suggests that education can be a good productivity signal and helps reduce the range of the gap; furthermore, highly-educated women experience lesser gender-based pay differences as the length of the employment relationship increases.Gender wage gap, human capital, distributional analysis

The Distribution of the Gender Wage Gap in Italy: Does Education Matter?

In this paper we evaluate the wage gap due to differences in rewards to characteristics by studying the entire distribution of the individual unexplained wage gap. We use quantile regressions and an adaptation of the procedure suggested by Machado and Mata (2005) to derive the marginal distributions of predicted and counterfactual female wages. Then, we estimate probability distributions of unexplained wage gap conditional to observed characteristics. The methodology allows to evaluate the probability of women with different characteristics to experience any level of discrimination. The main focus of the paper is on the relationship between human capital characteristics and outcomes in differences in pay. In particular, we focus our attention on different educational levels. Under the hypothesis that women invest in education to signal their productivity, we should detect a lower wage gap -due to differences in rewards to characteristics- among high educated females. Our analysis suggests that education can be a good signal but not for all females. We also show that education interacts differently with other human capital characteristics, such as general experience acquired in the labour market. The analysis is carried out on Italian data drawn from the last available cross-section of the European Community Household Panel (2001)Gender Wage Gap, Distributive Analysis, Human Capital

Gender Auditing in a Capability Approach

Feminist studies have developed several tools to assess the gender impact of public policy and, in particular, of public budgets. We introduce an innovative approach to gender auditing of public budgets inspired by the capability approach. On the one hand we expand the scope of assessing the gender policy impact taking into account women’s multidimensional wellbeing, on the other hand, we use a women’s perspective to conceptualize the capability approach and make it operational in the space of public policies. Within this extended reproductive approach, gender budgets could become a tool for advancing a reflection on social and individual well being and for greater transparency on the gender division of labour, the distribution of resources and sharing of responsibilitiesHuman development; Economics of gender; Gender auditing; Capabilty approach

Allocation of Time within Italian Couples: Exploring the Role of Institutional Factors and their Effects on Household?s Wellbeing

taly is characterized by a very uneven distribution of paid and unpaid work in gender terms. Italy has the lowest female employment rate apart from Malta in the European region, with a tangibly wide gender gap in employment and participation rates to the disadvantage of women. Furthermore, the female labour supply is very unevenly distributed across the Italian regions, and both institutional and labour market factors may be considered as lying at the basis of the high regional heterogeneity. This paper aims at understanding more in depth the uneven allocation of time by gender in Italian households. For this purpose we propose a model on the partners? allocation of time, that takes into account the simultaneity of partners? allocation of time decisions, as well as the issue of censored observations in some partenrs? uses of time. In order to estimate this model, we use IT SILC 2007 data that provides us with information on income and hours of work as well as on other relevant socio-demographic variables, maintaining the significance at regional level. This also allows us to analyze the contribution of institutional factors (like the heterogeneous distribution of childcare services in Italy and labour market differences) and interaction with various dimensions of wellbeing. Our findings suggest that an increase in women?s wages affects women?s working time, both by directly increasing women?s paid hours of work, and decreasing the time devoted to household activities and indirectly via a more equal distribution of unpaid work within the couple. The presence of children in the household tends to reduce women?s paid work, while having a positive effect on the time spent by the husband in paid work and on both partners? supply of unpaid work. We also note that the availability of childcare services represents the most relevant factor affecting women?s participatory decisions as well as their hours of paid work.time use; economics of gender; labour supplì;

Allocation of Time within Italian Couples: Exploring the Role of Institutional Factors and their Effects on Household's Wellbeing

Italy is characterized by a very uneven distribution of paid and unpaid work in gender terms. Italy has the lowest female employment rate apart from Malta in the European region, with a tangibly wide gender gap in employment and participation rates to the disadvantage of women. Furthermore, the female labour supply is very unevenly distributed across the Italian regions, and both institutional and labour market factors may be considered as lying at the basis of the high regional heterogeneity. This paper aims at understanding more in depth the uneven allocation of time by gender in Italian households. For this purpose we propose a model on the partners' allocation of time, that takes into account the simultaneity of partners' allocation of time decisions, as well as the issue of censored observations in some partenrs' uses of time. In order to estimate this model, we use IT SILC 2007 data that provides us with information on income and hours of work as well as on other relevant sociodemographic variables, maintaining the significance at regional level. This also allows us to analyze the contribution of institutional factors (like the heterogeneous distribution of childcare services in Italy and labour market differences) and interaction with various dimensions of wellbeing. Our findings suggest that an increase in women's wages affects women's working time, both by directly increasing womens paid hours of work, and decreasing the time devoted to household activities and indirectly via a more equal distribution of unpaid work within the couple. The presence of children in the household tends to reduce women's paid work, while having a positive effect on the time spent by the husband in paid work and on both partners supply of unpaid work. We also note that the availability of childcare services represents the most relevant factor affecting women's participatory decisions as well as their hours of paid work.

Children Capabilities and Family Characteristics in Italy

This paper explores the possibilities of using structural equation modelling to measure capabilities of Italian children. In particular the paper focuses on two capabilities: “Senses, Imagination and Thought” and “Leisure and Play Activities ”. The indicators used to measure the capability of ‘Senses, imagination and thought’ for 6-13 years old children are attitude towards education, attendance to arts classes and other type of extra curriculum classes like computing and languages. The variables used as indicators of the capability of “Leisure and play activities” include how often children play in playground, various types of games, attendance to sports classes. We use both descriptive statistics, an ordered probit model, and a structural equation model in order to investigate the relation among the above mentioned indicators, the latent construct for capabilities and a set of covariates. Moreover we use a new data set in order to include family income among the covariates. The data result from the matching (through a propensity score method) of two data sets: Bank of Italy Survey on Income and Wealth for year 2000 and Istat Families, social subjects and childhood condition for year 1998.Education, Capabilities, Child Well Being, Structural Equation Modelling