Disposable Workforce in Italy

Abstract

This paper explores the "disposable" patterns of workforce utilization in Italy, well under way before the cyclical downturn of the early 90's and before the main reforms of the Italian labor market. The term "disposable" reflects the fact that many young people enter the labor market, their services are "used" as a disposable commodity for a few years, after which they leave the labor market altogether and are no longer observable in the official (administrative) data. Workforce disposal is evident and dramatic: out of 100 new young entries, about 70 are still in the labor market 10 years after entry if their first job spell was at least one year long. For those – three times as many – who have started their career with a short employment spell (youth employment, unemployment, unemployment duration